The Reserve Bank of India (RBI) issued draft guidelines on mobility cards that will allow passengers to travel without cash in metros, buses and taxis carrying prepaid cards with value up to Rs2,000.
In a bid to boost prepaid payment instruments (PPIs) for commuting, RBI has introduced a new category of PPIs that will be issued by the mass transit operators (such as metro or road transport). With a minimum validity of six months from the issue date, the PPI- MTS (mass transit systems) will be re-loadable with a balance limit of Rs2,000. No cash-out or refund will be permitted from these PPI.
“It was felt that a separate category of semi-closed PPIs for MTS which handle a large number of small value cash payments will facilitate the migration to electronic payments in line with the country’s vision of moving to a cashless society,” RBI added.