Now, National Common Mobility Card can be issued with a limit of Rs 3,000 without any KYC as RBI eases rules

Mar18,2024



RBI eases rules for National Common Mobility Card: The National Common Mobility Card ,NCMC), designed to streamline digital payments across various public transport systems in India, has seen limited adoption so far. However, recent regulatory changes may promote its use in the future.
reserve Bank of India (RBI) has permitted the issuance of NCMC cards with a maximum limit of Rs 3,000 without any requirement KYC This new rule is expected to encourage more people to get and use these cards, said a report in Verification.ET.
The updated RBI rules allow banks and prepaid companies to issue NCMC cards with a limit of Rs 3,000 without KYC verification, especially for transit payments. Once customers complete the KYC process, these cards can be used for regular transactions.
Ravi Goyal, managing director of AGS Transact, expressed optimism about the impact of this regulatory update, saying it could attract more players in the market. AGS Transact, in partnership with RBL Bank, offers NCMC services in Bengaluru through Ongo-branded prepaid cards.
According to a senior banker, despite the existence of about 200 million NCMC-enabled cards issued by 48 banks, actual usage is limited. Unlike closed-loop cards limited to specific metro services, the NCMC card can be used for payments on the metro, buses, toll plazas and fuel stations, with plans to expand to commuter trains connecting suburbs to major cities.
The concept of NCMC was inspired by successful systems such as the Oyster Card in London and the Octopus Card in Hong Kong. However, India's decentralized public transport system, managed by individual state governments, has posed challenges for its quick adoption and implementation.
Additionally, the recent Paytm regulatory issues have meant that many metro companies that had tied up with PPBL for payment services have had to move to other players. Following instructions to discontinue services with PPBL, Delhi Metro has switched to Airtel Payments Bank. A Delhi Metro spokesperson confirmed the change and stressed its commitment to promoting NCMC.



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