Now you can get common transport cards with NBFCs: RBI

Now, you will get more payment alternatives for commuting on public transport in the country. The Reserve Bank of India has allowed banks as well as other financial institutions like NBFCs to roll out many payment alternatives to commuters of public transport like metros, sub-urban trains, buses, etc.   These payment alternatives can be a type of pre-paid instruments (PPIs). Examples of PPI subsume debit cards, credit cards, e-wallets, etc. The apex bank’s latest decision is one more step in the direction of digitising public transport system of the country.

The most popular PPI that many banks have already rolled out for commuters are National Common Mobility Cards (NCMCs). Various public banks like State Bank of India (SBI), Union Bank of India (UBI),  Punjab National Bank (PNB), etc have already rolled out the NCMCs which commuters of public transport frequently use in the country.

Now, NBFCs like Bajaj Finance, PNB Housing Finance, etc have also been allowed to issue such PPIs like NCMCs for customers. The interesting thing is that such NCMCs can not only be used for transport but also for making payments wherever the customer wants.  The customer can use the NCMC just like he uses any other debit or credit card.

Customers can approach PPI issuing institutions on both online and offline channels to apply for an NCMC.

Currently, commuters can use the NCMC in metro trains and buses of most of the cities of the country, but,  gradually,  they will be able to use the transit card in all metros and buses of all the cities of the country.

The RBI’s latest move will lead to use of one card for commuting in all types of public transport. Such types of common mobility cards are already common in developed countries. And, now, India is also moving in the same direction. It will also help expedite digital transactions and give commuters affordable, rewarding and smooth travelling experience.