Why in News?
- The Delhi-Ghaziabad-Meerut Regional Rapid Transit System (RRTS) will have contactless ticketing to ensure seamless, easy, comfortable and quick entry and exit from its stations.
What is contactless ticketing
- The use of contactless bank cards is primarily used to ride on public transport.
- These contactless systems are unique in their ability to allow a passenger of any kind to turn up and travel using what they already have in their pocket, automatically calculating the correct fare to charge and doing so to the credit/debit card they travelled with.
How is RRTS going to achieve this
- The National Capital Region Transport Corporation (NCRTC) mobile app will facilitate booking of digital QR tickets, card recharge and other functionalities for commuters who will be able to utilise other card-based means to commute on the system as well.
- Commuters will be able to use any NCMC card issued by any metro or transport authority or financial institutions in the country. A commuter will have options to use QR code tickets which can be generated digitally with the help of NCRTC mobile app or website
- The NCRTC will adopt state of the art Automatic Fare Collection (AFC) system but also QR code-based ticketing and EMV (Europay, Mastercard, Visa) Open Loop contactless card based on similar standards as the National Common Mobility Card (NCMC).
What is an Automatic Fare Collection System?
- AFC System is the central point of a transit operator to automate the fare collection process.
- An automated fare collection (AFC) system is the collection of components that automate the ticketing system of a public transportation network – an automated version of manual fare collection.
- NCMC aims to make AFC in India with an indigenised service provider( AFC in metros were by foreign players). In order to avoid the vendor lock-in and create an interoperable system, there was a need to develop indigenous standards and AFC systems under Make in India initiative.
What is EMV?
- EMV is a technical payments standard that ensures chip-based and contactless payment cards and terminals are compatible (can communicate with each other) around the globe. EMV literally stands for Europay, Mastercard and Visa, the three companies that developed the specifications for the standard.
- For years EMV cards have been used for retailing around the globe. The card uses a microprocessor embedded in it that connects to an EMV Point Of Sale unit (POS) via card insertion or a contactless tap.
What is NCMC?
- National Common Mobility Card (NCMC) – One Nation, One Card for transport mobility is an initiative of the Ministry of Housing and Urban Affairs to enable seamless travel by different metros and other transport systems across the country besides retail shopping and purchases.
- The Indigenous Automatic Fare Collection System based on One Nation One Card Model is the first of its kind in India.
- This is India’s First Indigenously Developed Payment Eco-system for transport and consists of NCMC Card, SWEEKAR (Swachalit Kiraya: Automatic Fare Collection System) and SWAGAT (Swachalit Gate- a gate and card-reader system) which is based on NCMC Standards.
- The customer may use this single card for payments across all segments including metro, bus, suburban railways, toll, parking, smart city and retail.
Advantages of NCMC/ Contactless Ticketing/
- Ticket in Your Pocket :There is no need to get a ticket before traveling which is great for first time users and breaks down one of the main barriers to accessing public transport.
- Reduce Costs: Contactless EMV follows Bring Your Own Ticket (BYOT) philosophy meaning agencies no longer need to issue paper or plastic tickets, saving money, also becoming environmentally friendly
- Just (Tap and) Ride: Simply tapping and riding makes using public transport much more convenient and enables a seamless experience without needing to know the exact route or worrying about overspending
- This has heralded a better way to move around urban areas by freeing passengers from needing to purchase a ticket before traveling.
- Help in higher digital payments penetration, savings on closed loop card lifecycle management cost and reduced operating cost.
- Banks will get access to segments which are highly driven by cash but stickiness in nature.
- This will further help the government in digitization of low value payments and reduced cost for the entire ecosystem.
- Reduces physical interaction and thereby diminishing the chances of spread of germs.
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