Reserve Bank of India (RBI) on Friday permitted banks and non-banking institutions to issue pre-paid instruments for making payments across various public transport systems.
With the introduction of these instruments, commuters will have more options to pay for tickets besides cash mode.
The instruments will provide convenience, speed, affordability and safety of digital modes of payment to commuters for transit services, RBI said in a notification.
Public transport systems across the country cater to a multitude of commuters on a daily basis, it added.
Welcoming the decision, fintech MobiKwik's co-founder and CEO Bipin Preet Singh said, "this marks a pivotal moment in our journey towards modernising transit systems".