RBI Allows Issuance of Pre-paid Instruments for Public Transport Payments

The Reserve Bank of India (RBI) announced on Friday that banks and non-banking institutions are now authorized to issue pre-paid payment instruments across different public transport systems. This move offers commuters additional payment alternatives beyond cash for purchasing tickets.

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According to the RBI notification, these instruments will offer commuters the benefits of convenience, speed, affordability, and safety associated with digital payment methods. The notification highlighted that public transport systems serve numerous commuters daily nationwide.