Gurugram metropolitan authority to launch new prepaid card for bus rides, shopping

The Gurugram Metropolitan Development Authority (GMDA) is likely to launch, on August 28, an open loop contactless prepaid card that will allow people to travel cashless on its 25 new buses

The Gurugram Metropolitan Development Authority (GMDA) is likely to launch, on August 28, an open loop contactless prepaid card that will allow people to travel cashless on its 25 new buses, which will also be pressed into service on the same day.

Though the GMDA has missed several deadline for launching the city bus service, GMDA chief executive officer V Umashankar assured that the buses and cards will be launched on August 28. (HT Photo)

This card will also allow users to make monetary transactions on utilities by November, GMDA chief executive officer V Umashankar said.

The card is loosely based on the Octopus Card in Hong Kong and can be used at retail and vendor stores where systems will be made facility-compatible in the coming months.

GMDA officials said they have tied up with banks, including the State Bank of India (SBI), HDFC, IDFC and a digital wallet service provider, for this purpose.

According to Umashankar, the card will initially be limited to a ‘closed loop system’ as a certificate from the National Centre for Trade Information (NCTI) is awaited.

“The cards will be available for residents August 28 onward. Initially, people will only be able to use the card for the bus service. However, our application for the certificate from NCTI is expected to be processed by October, and subsequently residents use the card in an open loop system from November,” Umashankar said.

The GMDA chief said the new card could be a substitute for a debit card as there will be no upper limit for top-ups in the system. “All these cards are linked to the user’s mobile number. Offline, the card can have a stored value of ₹1,000-₹2,000, which the card holder can use when there is no internet connectivity. This also helps in preventing the user losing a major amount in case the card is stolen,” he said.

He added that the NCTI, in its history, has never certified an open loop contactless card, and hence, the GMDA officials are working closely with them for its certification. “The concept (of an open contactless prepaid card) is new to the country,” Umashankar said.

Though the GMDA has missed several deadline for the city bus service—the most recent one being August 15 due to a pending notification with regard to Motor Vehicle Tax, inspection for compliance, fitness of the 25 buses and issues related to digital ticketing devices—Umashankar assured that the buses and cards will launch on August 28.

“The bus service is set to be launched on August 28. IDFC bank has started delivering the card samples and these will be ready for distribution. The other banks are expected to start delivering the cards from October onwards,” Umashankar said.

According to GMDA officials, the cards will be available at bus queue shelters, where representatives from the issuing bank or the GMDA will be present to hand them out to residents. People will then have to link the card to their mobile numbers and personal bank accounts and enter a top-up amount for the card to become usable.

Umashankar said associate banks are currently developing a software for entering top-ups. He added that the GMDA is also working on setting up camps at community centres for distributing the cards and informing residents about its functions and benefits.

The open loop contactless card will be available free-of-cost to residents, unlike the Delhi Metro Rail Corporation (DMRC) card, which needs Rs 100 as deposit for procuring the card.

The card can be recharged with a minimum top-up of Rs 50. Umashankar said that in the Rs 50- Rs 100 top-up slab, a fee of ₹10 will be deducted from the customer. However, for top-ups above ₹100, no cost would be deducted, he said.

Last week, GMDA officials had released price slabs for the bus service—Rs 10 for travel up to five stops, Rs 20 for travel between five and 20 stops, and Rs 30 for travel exceeding 20 stops.

To give impetus to cashless transactions, GMDA officials our providing a Rs 2 discount for each price slab.

The GMDA officials said since the card is in an open loop system, which means it can be used anywhere in the country, if planned, it is not being named as of now.