The Reserve Bank of India (RBI) on Friday allowed banks and non-banking institutions to issue pre-paid instruments (PPIs) for making payments on all public transport systems. This will provide great relief to those traveling in public transport. Now they will not have to depend only on cash to buy tickets. They will also be able to buy tickets through other payment modes.
The central bank said in its notification that a large number of people travel by public transport every day in the country. In such a situation, these instruments will provide the facility of digital payment to the passengers, which will be economical and will also save them time. This facility will be secure and will also give them other options for payment besides cash.
While traveling on public transport, there was a big problem due to only cash option to buy tickets. Especially, money change. If a passenger had a large note, he had to wait for a long time to get the change back. There used to be arguments among the passengers regarding this. But, this problem can be reduced with the new initiative of RBI.
What is PPI?
PPI is a financial instrument in which money can be invested in advance. Goods and services can be purchased with this money. You can even send money to your friend or relative through PPI. At present there are three types of PPI in the country – Semi Closed System PPI, Closed System PPI, and Open System PPI. It can be issued by banking and non-banking bank institutions.
