<p><em>Pre-paid cards to be issued by mass transit system (MTS) operators to cover road-tolls, metros, bus stations and airports</em><br><br><br>The Reserve Bank of India (RBI) has set the stage for the introduction of pre-paid cards to be issued by mass transit system (MTS) operators. Simply put, it covers road-tolls, metros, bus stations and airports.<br><br>As on date, MTS operators have to tie-up with banks to issue pre-paid plastic which enables a customer to swipe for transit rather than queue up to buy tickets. It will not only help cut down on time, but will reduce cash in circulation. As we go along, an MTS pre-paid card issuer can customise offerings and even jointly issue them – like in a metro operator joining hands with a bus-services player; the options are many.<br><br>As a sub-category of plastic, prepaid continues to grow around the world and is expected to reach $822 billion by 2017. According to MasterCard’s 2012 Global Prepaid Sizing Study (forecasts up to 2017), the popularity of prepaid is driven by its unique and practical ability to solve for almost any payment need. It democratises electronic payments for those outside the traditional banking system and provides a transparent, cost-effective alternative to cash and checks for both governments and businesses. Prepaid also serves the needs of banked consumers who find it an ideal payment tool for segmenting spend such as travel and online shopping.<br><br><strong>Main Features Of Prepaid Plastic For Mass Transit</strong><br><br>· Semi-closed PPIs will be issued by mass transit system operator (PPI-MTS)<br><br>· The PPI-MTS will necessarily contain the Automated Fare Collection application related to the transit service to qualify as PPI-MTS<br><br>· Apart from the mass transit system, such PPI-MTS can be used only at other merchants whose activities are allied to or are carried on within the premises of the transit system<br><br>· The PPI-MTS issuer will ensure on-boarding of merchants (only those permissible as under (iii) above) following due procedure applicable to any other PPI issuer<br><br>· The PPI-MTS will have minimum validity of six months from the date of issue;<br><br>· The issuer may decide upon the desired level of KYC, if any, for such PPIs;<br><br>· The PPI-MTS issued may be reloadable in nature and at no point of time the value / balance in PPI can exceed the limit of Rs. 2,000/- (Rupees Two Thousand Only);<br><br>· No cash-out or refund will be permitted from these PPIs;<br><br>· Funds transfer under the Domestic Money Transfer (DMT) guidelines will also not be applicable to these PPIs</p>
