Tag: ETM

NCMC Is Here; But Problems Will Persist

Public transit in India has a problem of plenty, on multiple levels. Plenty of obstacles, that is.

Obstacles, such as lack of political will to plan and execute projects at the state level, the Not-In-My-Backyard (NIMBY) syndrome among persons who may or may not be affected by a planned project, a militant civil society, among various others.

One of these obstacles also include the variety of fare collection media. Most cities of India have not been able to replicate successful projects, like Oyster (London), Octopus (Hong Kong), Nol (Dubai), OMNY (New York), on their public transit systems, demonstrating a lack of coordination between the different public transit system operators. Most of such attempts – such as the GO MUMBAI card, designed for a single ticketing system on the BEST and the Mumbai Local – failed miserably, due to the transit operators’ resistance, or a half-baked product, or a private contractor lacking the required expertise to support the project, etc, or a mix of all of them[1]. Although, to be fair, the public transit systems in cities like London, Hong Kong, Dubai, New York etc are run directly or indirectly by a unified city-level transit agency, like Transport for London, Metropolitan Transportation Authority (New York), Roads and Transport Authority (Dubai) and MTR Corporation (Hong Kong) – something which, as conventional wisdom suggests, may be in the realm of impossibility in India.

A national common mobility card had been on the drawing board since 2010. The card was titled “More” – a reference to the peacock – and was first launched in Delhi, for unified payments on the Delhi Metro and DTC buses. This too, failed, due to a lack of effort from all stakeholders. Delhi Metro, DTC and the Rapid Metro Gurgaon now have the ONE DELHI card, a closed-loop system.

In view of the failures of the past on this front, the Modi government launched the National Common Mobility Card in 2019, with a different approach this time. This time, banks too were involved in the project, and so was the National Payments Corporation of India (NPCI)[2]. Under this new approach, NCMC wasn’t launched as one card, but as a set of technological standards developed by Bharat Electronics Ltd (BEL), the Centre for Development of Advanced Computing (C-DAC), and the NPCI, to be adopted by all transit operators and projects, who are free to choose their own issuer and acquirer banks to run their respective fare collection and management projects. NCMCs mandatorily have to be RuPay contactless cards issued by banks – debit, credit or prepaid – making them eligible to be used for purposes other than public transit fares too.[3] Due to them being RuPay cards issued by banks, it is easy to scale up operations for public transit systems not using automated fare collection (AFC) systems, such as buses.

While now is the closest India has ever come to a truly “national” common mobility card, there is still a long way to go. Cities like Mumbai, Chennai, Kolkata, continue to be very heavily reliant on suburban railway services operated by the concerned zones of the Indian Railways, by using legacy infrastructure. Most importantly, suburban railways, like the mainline long-distance operations, use the proof-of-payment system (PoP) for fare collection. The PoP system entails passengers buying tickets from the ticket windows or online (through the UTS app), and then using the train. The only fare control system, in this case, are random checks by ticket examining staff onboard or at the destination. Most of the times, these random checks are limited to AC trains, and the first-class carriages on non-AC trains. Thus, this makes for a highly inefficient mode of fare collection, control and management, due to the high possibility of fare evasion by passengers.

However, there seems to be no viable alternative to PoP systems on suburban railways. While suburban rail systems currently under construction, such as K-RIDE’s Bengaluru Suburban Rail Project, can adopt the AFC systems, changing the fare collection system on existing systems, and that too, heavily-used systems like the Mumbai Suburban Railway, may prove to be difficult without rebuilding the system from the ground up. Moreover, due to there being different fare classes and products (single journey tickets, return journey tickets, season tickets for first and second class, and also the luggage compartment), converting to AFC systems is all the more difficult.

[1] R. Aklekar, Mumbai’s experiment with smart card fails, DNA (04/01/2010), available at https://www.dnaindia.com/speak-up/report-mumbai-s-experiment-with-smart-card-fails-1447695, last seen on 26/01/2023.

[2] https://www.npci.org.in/PDF/npci/rupay/2020/Concept_Note_Implementation_of_RuPay_qSPARC_based_NCMC%20v2.1.pdf

[3] https://www.npci.org.in/what-we-do/rupay-contactless/live-members

Featured Image: Mumbai One and Chalo NCMC (Photo: Gandharva Purohit, Used with Permission)

Also Read: American Elections Are Like Indian Transport: Fragmented

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A Review Of BEST’s Chalo Bus On Day One

The Brihanmumbai Electricity Supply and Transport (BEST) undertaking’s long-awaited app-based premium bus service finally hit the roads on 12 December 2022. The bus was launched at the launch event of Switch EiV22 (India’s First Electric Double Decker) at Y.B. Chavan Centre, Nariman Point. After a long gap of 12 years, BEST has finally received a new batch of Ashok Leyland buses, in the form of the EiV12. The first four of 200 buses (ordered) were deployed between Lodha Splendora, Bhayanderpada to Maker Maxity, Jio World Drive in Bandra Kurla Complex (BKC). This service is managed by Chalo Mobility in association with BEST. I turned out fortunate to explore this service on Day One and present an in-depth review.

You can watch a video on this on my Youtube channel below:

Route

To begin with, this route was originally diverted via Neelkanth Greens, Vasant Vihar, Devdaya Nagar and J K Gram before entering the Eastern Express Highway. After Mithagar, Mulund (East), its next stop was directly at Equinox Business Park on LBS Marg and the route went via the Santacruz – Chembur Link Road (yes, the ride was a nightmare). The bus used to give a tour of BKC which was way too time-consuming. But it was all fixed in the same week by omitting the Thane detour and taking the bus directly through the Majiwada Flyover to Eastern Express Highway. The later part was modified by taking the BKC Connector, instead of SCLR.

Chalo Bus (Photo: GP Busfanning)
Chalo Bus (Photo: GP Busfanning)

Pricing

This is not a regular bus. To understand the passenger market it serves, one needs to analyse the premium service segment served by players like MYLO, CityFlo, Kommute, etc. The intention of running it fully reserved is to ditch standing in crowded buses and thus the premium fares. The end-to-end ticket of S101 was ₹205 on the Thane – BKC route and that of S102 was ₹50 on the Bandra – BKC route. Later, there were some changes in the fare chart, so please do refer to the Chalo App for the same. Apart from one-way tickets, various bus pass plans were announced by BEST along with the first ride for free (which I utilised on my way home from BKC). There is also a trial pass to claim five long distance trips at the cost of ₹20 per trip. Your unused rides get added up on the next pass, giving an absolute value for money.

Fares on the Chalo Bus
Fares on the Chalo Bus

Facilities

To serve the purpose of premium fares, these buses come with the capacity to carry 42 passengers in a 2×2 configuration. All the seats can recline up to 45° and come with a USB power outlet. The armrests are adjustable. Once a ticket is booked, a Booking ID is generated, and the live location of the bus is regularly updated. A seat can be reserved even if the bus is five minutes away and gets authenticated through the bus driver feeding it in the system.

Interiors of the Chalo Bus (Photo: GP Busfanning)
Interiors of the Chalo Bus (Photo: GP Busfanning)

Experience

My first ride in S101 was more or less an adventure. Several passengers boarded the bus with the first ride being offered to them, for free. A staff member from Chalo was onboard, guiding both the driver about roads and passengers about the App. It took an hour for the bus to finish its BKC Tour where in LBS Marg and SCLR were waiting to welcome us with traffic congestion. After skipping the Ghatkopar flyover, our bus ran into issues as the steering felt heavy and all of a sudden, the AC stopped functioning. The driver pulled over to check the issue while passengers onboard had already begun taunting about the capacity of Electric Buses. To our luck, the issue was resolved within 10mins, and we were back on our way to Thane.

Looking at Traffic from the driver's seat (GP Busfanning)
Looking at Traffic from the driver’s seat (GP Busfanning)

Conclusion

The service has great potential to expand. In a way, it can also bring the bygone AC Super Routes of BEST by covering long distances. After a hectic day, one can relax on the way home since the bus has ambient lighting that can be dimmed in the evening. More routes are considered for operating the Chalo Bus, like Thane – Powai, BKC – Kharghar and Chembur – Cuffe Parade. Some of these might be operational soon as new buses arrive in January 2023.

S101 from Thane to BKC (GP Busfanning)
S101 from Thane to BKC (GP Busfanning)

It’s great to see BEST fighting back with the competitors in the premium segment but the fleet expansion for its routes is still a burning topic. The upcoming year will test BEST in its struggle for existence. More than 2,500 Buses are not delivered on one hand, while the Leyland Lynx Midi and TATA CNGs are soon going to end their shelf-life. Another route rationalization (like 1 September 2021) will be a pain for passengers.

Ashok Leyland's Old CNG Bus vs Ashok Leyland's Switch Electric Bus
Ashok Leyland’s Old CNG Bus vs Ashok Leyland’s Switch Electric Bus

Also Read:

The curious case of BEST and its AC buses

Tussle For The Big League: Olectra Greentech Wins Tender While Tata Motors Move Court

Chalo, Aage Badho: Getting Familiar With BEST’s New App For Tickets

BEST Has A Problem That Needs To Be Solved, Writes A Transit Fan

Featured Image: Chalo Bus (Photo: GP Busfanning)

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A Quick Guide To Using The Chalo Card On BEST Buses

After getting well-versed with the Chalo app, it’s time to get familiar with the Chalo Card. For Mumbai, this isn’t the first time a smart card system has been implemented. Mumbaikars are already using them on Central and Western Railway for buying tickets through the automatic ticket vending machines (ATVM) for nearly a decade. The GO Mumbai Card from 2005 can be called as a precursor to the National Common Mobility Card (NCMC). It could be used for Railways as well as BEST buses although it didn’t have a bright future. Then came the Trimax RFID cards in 2011 for bus passes which were a new concept as bus ticketing got digital with the electronic ticket machines (ETMs) manufactured by Mumbai-based Powercraft Electronics under the brand-name Balaji. You can read more about the earlier version of BEST’s electronic ticketing system here- Electronic Ticketing Systems: Who got it right and how.

Fast forward to 2021, when Chalo became the new ticketing vendor for BEST, it was yet another step forward towards promoting cashless payments. The Chalo app offers payments through online methods such as UPI, Credit and Debit Cards and Net-banking for ticket purchase. To make it better, BEST launched their Super Saver Plans in Mumbai for an efficient commute. You can read about it in-detail from the previous article where we explored the Chalo App and its features. On 1 January 2022, BEST launched the long-awaited Chalo Card in Mumbai (starting from Colaba & Wadala Depot). This Smart Card works as an eWallet (replacing the earlier Trimax-powered ePurse) which can be bought from the bus conductor. After being a tremendous success in Vijayawada, Nagpur, Jabalpur, Udupi and Mangalore, the Smart Card has finally been launched in Mumbai.

Chalo Travel Card issued for use by APSRTC
Chalo Travel Card issued for use by APSRTC

The Chalo card costs ₹70 and can be recharged by adding a minimum balance of ₹10 and then further in multiples of ₹10. As explained by the crew, the Chalo card can be recharged online as well but needs to be activated by the bus conductor. The most satisfying part however, is that your balance does not come with an expiry date. So even if another lockdown is imposed from tomorrow, the amount added in your Chalo Card will remain copacetic. The wallet can be recharged on any day and at any time with the help of a bus conductor. You can even feed your Super Saver Plans in it and use it as a bus pass. There are talks to make this Card functional on the Mumbai Metro in the near future, thereby taking the city closer to a form of the NCMC. But what is the future? Time will tell…. But it’s definitely bright.

Chalo Travel Card issued by BEST in Mumbai (Photo: Gandharva Purohit)
Chalo Travel Card issued by BEST in Mumbai (Photo: Gandharva Purohit)

Bus conductors in Mumbai found it difficult in the beginning to issue tickets bought through Chalo, but they have now gained confidence as the user base is increasing day by day. From the passengers’ side, the reviews are showing positive growth. As an integrated mobile app that can track buses along with showing the occupancy as well as booking tickets, Chalo has taken ticketing and bus tracking to another level. Once BEST increases its fleet strength, it will help in improving the frequency. In late January, BEST went a step ahead and integrated Chalo with the Maharashtra government’s Universal Travel Pass, thus negating the need to carry a printout.

Please Note: This Article is not Sponsored by Chalo.

Featured Image: Chalo App and Card by Gandharva Purohit

If you are stepping out, make sure you wear a mask, follow COVID-appropriate behavior and keep your hands sanitised. Omicron is here and the situation is quite scary.

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Chalo, Aage Badho: Getting Familiar With BEST’s New App For Tickets

The Brihanmumbai Electric Supply and Transport Undertaking (BEST) has moved a step ahead towards cashless payments with its new ticketing vendor Chalo. The system was initially rolled out late November 2021 and now functioning across all 27 bus depots of BEST. The app, which was in its beta phase until December 2021, is now available for everyone. Today, we will slowly cover all the aspects regarding the Chalo App.

Ticketing

You can purchase all sorts of tickets through Chalo App, ranging from a single journey ticket to a full day pass or even a monthly season ticket. More into that later, let’s get acquainted with a step-by-step ticket purchase through Chalo.

Step 1: Open Chalo and enter your bus number or open Chalo and select One-way ticket.

Step 1: Using the Chalo App
Step 1: Using the Chalo App

Step 2: Choose the bus route you want to board. Enter the starting point and destination of your journey along with the Number of tickets you wish to purchase. You will be then shown a fare breakup of your ticket.

Step 2: Using the Chalo App
Step 2: Using the Chalo App

Step 3: Choose a mode for payment and you will be redirected to the payment gateway. Your ticket is now booked & valid for next 24 hours. Save it until your bus arrives. Your ticket remains visible in the app itself and will be accessible till your ride commences.

Step 3: Using the Chalo App
Step 3: Using the Chalo App

Remember: Do not start your trip unless you board your bus or see the bus conductor. Once activated, the ticket expires in 15 minutes. If your bus is delayed, the purchased ticket can be utilised within 24 hours on the same route. Do not worry.

Remember: Using the Chalo App
Remember: Using the Chalo App

Meanwhile:

Track the live location of your bus on the app a get to know the occupancy and Estimated Time of Arrival (ETA).
The app also comes with a route planner that can suggest buses according to your travel needs. You can track a bus first and purchase a ticket accordingly. The blue icons indicate active buses on route.

Meanwhile: Using the Chalo App
Meanwhile: Using the Chalo App

Final Step: Activate your ticket and show it to the conductor for getting it printed. As of now, passengers would be issued a paper ticket from the bus conductors. It will take time to make this process totally paperless. If the Token Number on your Mobile Ticket does not work, then press the orange text saying “Tap Here” which will generate a QR Code on your Mobile Screen. Get it scanned by the Conductor and your ticket is finally printed.

Final Step: Using the Chalo App
Final Step: Using the Chalo App

Your Printed Ticket will look like this. Do notice “Mobile Ticket” printed as a Mode of Payment.

Printed ticket booked using the Chalo app
Printed ticket booked using the Chalo app

What else does the app have to offer?

Recently, BEST rolled out a list of Super Saver plans that offers passengers fare-based trip plans starting from two trips a day at ₹9 for non-AC and ₹10 for AC buses. In a way, by subscribing these fare-based limited period plans, you get to save few rupees along with not shelling any change from your pocket. The procedure (as of now) for generating a ticket is the same mentioned for a one-way ticket.

In-detail information about the Super Saver plans announced by BEST are below:

BEST's Super Saver Plans at a Glance
BEST’s Super Saver Plans at a Glance
BEST's Super Saver Plans
BEST’s Super Saver Plans

Why Chalo?

The day this app was inaugurated in Mumbai, many social media users lost their cool regarding the name Chalo, questioning why the undertaking did not look out for a Marathi name. The answer is simple. Chalo has been in existence way before November 2021. As of now, this vendor provides service in 20 cities across India (including Mumbai) and five cities are served the BETA Version of the Chalo App. Well, this wasn’t even a thing to explain because right after installation, the App asks to choose a city and the list is self-explanatory.

The Future

On 1 January 2022, BEST launched the Chalo Card which will act as an e-Wallet during your journey. The Card has a tap-and-go mechanism which would be sensed by the upper part of ticket printing machine. I will write in-detail about that, once it is tried and tested. BEST is slowly moving closer towards cashless payments and the tracking system is getting better day by day. Chalo being in the initial stage for Mumbaikars needs a certain recognition and passengers need proper guidance in order to switch to this app. This shows a brighter future for BEST bus travel but, there is one thing where BEST is still lagging behind that is fleet expansion. More buses can attract more passengers and can generate more revenue for the Undertaking. With ticket fares so cheap, people are preferring buses over auto-rickshaws and taxis in Mumbai. Everyone is hoping for new single and double decker buses to join the fleet as soon as possible & help this difficult phase to end.

The Chalo Card
The Chalo Card

If you are stepping out, make sure you wear a mask, follow COVID-appropriate behavior and keep your hands sanitised. Omicron is here and the situation is quite scary.

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A Trip Down Memory Lane: Pictures of BEST’s Punched Daily Passes

In late 2014, I developed a weird interest, one that would continue on for two more years. I started documenting bus tickets and daily passes. I then wrote an article here, documenting only daily passes, updating the article over the next two years with pictures from other cities I had been to. You can read the article here: The Underrated Daily Pass.

Among them, what I realised I was that I did not have a picture of BEST’s punched passes. When BEST switched over to electronic ticketing machines (ETMs) in 2011, they made the complete switch. Unlike other transcos such as BMTC or PMPML which manually issues passes (wither punched from a wad or issued from a booklet), BEST issued daily passes also from the ETM. The only other city that I knew at the time that did this was Hyderabad.

A printed BEST Magic AC Daily Bus Pass from 2015. (Srikanth Ramakrishnan/BESTpedia via Wikimedia Commons)

It took me a while to get this picture because all the daily passes printed at that time had my name and ID number printed on it. Then BEST decided that IDs (smart cards) wouldn’t be required on weekends and holidays and one day I got this.

In January 2015, I put out a tweet asking people if they had the old pass or a picture of it. By 2018, BEST’s electronic ticketing was facing problems with the service provider Trimax IT facing bankruptcy, and BEST went back to punched paper tickets. However, I didn’t get much a chance to buy a pass since many conductors didn’t have them and I mostly used the Metro or Western Railway.

Nearly six years later, I was in for a surprise. I got not one picture but pictures of six different passes!

A Twitter user by the name of Mayuresh Pradhan replied to my tweet with this picture.

BEST's punched daily passes (Mayuresh Pradhan/Twitter)
BEST’s punched daily passes (Mayuresh Pradhan/Twitter)

This collection looks lovely no?

Now what are all these different passes? Well, back in the day, BEST had different passes available. The first pass is valid only on ordinary and limited buses in suburban regions, the second and sixth for ordinary and limited buses all over BEST’s operations’ area, the third is also valid for ordinary and limited buses all over BEST’s areas of operation, the fourth one is valid for all non-AC buses including express buses, and the fifth one is only for ordinary and limited buses in the city region, (SoBo).

Passes valid for the city region are valid upto Rani Laxmi Chowk (Sion Circle) and Mahim. Passes valid for suburban regions are valid north of this barrier (where autos ply). Passes that are valid on all routes are valid everywhere across the MMR where BEST operates including Navi Mumbai, Thane, and Mira-Bhayendar.

This is what the punched BEST Magic Day Pass looks like.
Don’t forget to follow Mayuresh on Twitter: @MayureshP2020

If you intend to step out whether you buy a daily pass or not, please wear a mask, carry sanitizer and maintain social distancing.

Featured image: A BEST ticket box clicked in 2015. (Srikanth Ramakrishnan/BESTpedia)

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With Bags of Change Lying At Depots, BEST Too Joins QR Code Bandwagon

After BMTC and MTC, BEST too has opted to go in for a QR code-based UPI payment system, except this time it is to eliminate loose change lying with the undertaking.

As reported by Rajendra Aklekar for Mid-Day, the new system will be tested by BEST for buses belonging to two depots, Wadala and Colaba. Conductors will wear a badge with the QR Code on it. Commuters will have to tell conductors their destination, he will tell them the fare and then commuters can scan and make the payment using a UPI-compliant app.

BEST apparently has crores worth of loose change lying in their depots, prompting them to sometimes pay staff salaries with them.

BEST currently allows passengers to pay using their prepaid card (the ePurse) and using the Ridlr app. Both will remain independent of the new system and will remain operational.

The ePurse system was down for a significant time (seven months) in the 2018-2019 period when ticket machines failed after their provider Trimax IT filed for bankruptcy.

Let’s hope BEST’s move will see UPI adoption increase further.

Featured image: Death of the BEST ticket; Oh, how the mighty have fallen (Satish Krishnamurthy on Flickr)

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After BMTC, MTC Picks Up QR Code-Based Cashless Ticketing In Chennai

Similar to the decision of the Bangalore Metropolitan Transport Corporation (BMTC), the Metropolitan Transport Corporation (MTC) of Chennai, fka Pallavan has also decided to implement a QR Code-based cashless ticketing mechanism on its buses.

The announcement was made by Tamil Nadu Minister of Transport M R Vijayabhaskar on 1 June 2020 via Twitter.

In his tweet, Vijayabhaskar has said that QR-code based cashless transactions were now permitted and that a trial run had begun using Paytm. According to a report by The Hindu, the two buses were both bound for the Secretariat at Georgetown with one originating at Thyagaraya Nagar (T Nagar) and the other at Todhunter Nagar in Saidapet.

Officials at MTC have said that once more buses hit the street, the system will be extended to them as well. Commuters can use any UPI-based payment app such as Google Pay/Tez, Paytm, PhonePe, KhaaliJeb or their bank app.

The system is very similar to the system that the BMTC has set-up, which is essentially only for cashless transactions and not cashless ticketing.

While the immediate side-effect of this would be an increase in UPI adoption across Chennai, it will still remain a time-consuming method. In the long run, the state government has to promote the National Common Mobility Card as a means to go forward.

One hopes that the MTC’s parent body, the Tamil Nadu State Transport Corporation (TNSTC) starts extending this to other cities including Coimbatore, Trichy and Madurai.

For UPI platforms, this is a golden opportunity to expand their footprint. While the better known apps like BHIM, PhonePe, Google Pay (formerly Tez) and Paytm have managed to get a market of their own, smaller niche apps like KhaaliJeb can make an impact here. KhaaliJeb (literally Empty Pocket in Hindi) is a UPI-based payments app designed for students. According the developers, the app has a student loyalty that will offer them discounts from merchants while also allowing them to split expenses. Given Chennai and Coimbatore’s status as educational hubs, this is the right time for such apps to strike gold.

If all goes well, it might seem like the Pallavan Kollavan (Killer Pallavan) tag might actually refer to cash.

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Also Read: Once This Pandemic Is Over, We Should Look At How We Transact

Featured image: An MTC bus belonging to the Central Depot on Route 21G from Broadway to Tambaram Railway Station. (Photo credits: VtTN on the Wikimedia Commons).

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BMTC Finally Starts Cashless Ticketing, Uses UPI-Based QR Codes For Transactions

Last month I wrote on how we needed to look at changing our ways of transacting in order to reduce the risk of contamination using physical currency. One of the points I had made was to target the transit sector in order to get people opt for cashless transit.

Many of of us expected the 2016 demonetisation to be the catalyst for a shift to cashless methods of travel, sadly it did not take off well. A year later, the situation was no different in adoption of digital payment systems in public transport.

In September 2018, the Central government finally announced the launch of the ‘One Nation, One Transport Card’, a rebadged version of the previous government’s long-dead More Card project. The National Common Mobility Card (NCMC), was finally launched on 5 March 2019 (also my birthday) but is still being rolled out and as of now is only available on the Delhi Metro.

Older readers of BESTpedia would remember that I had spoken to BMTC officials in 2016 on their Intelligent Transport System (ITS) and the impending release of a prepaid card for buses (similar to what Mumbai’s BEST has). While the smart cards were never a part of the ITS, they were due to be released by the end of 2016 but that did not happen.

The Times of India on 27 May reported that BMTC would implement a new measure to enable cashless transit in its buses. While initially implemented on 70 buses, it is now being expanded to 1,000 buses of the 3,500 buses that are currently on the streets.

The cashless ticketing system, however is not what most of us expected.

Each bus is equipped with a quick response code (QR Code) that is compliant with BharatQR and uses the Unified Payments Interface (UPI) to make payments. Passengers can use any UPI-based app such as Paytm, Google Pay, or PhonePe to complete the transaction and once the transaction is done, the conductor issues a ticket.

Here is an image of the conductor with the QR Code handing around his neck.

It is important to note here that the QR code based payment isn’t direct cashless ticketing, but rather a cashless transaction after which the ticket is issued manually. It isn’t similar to the QR code based ticketing used by the Indian Railways using the UTS app, or by Metro Rail systems in India. The latter uses QR codes on phone screens or paper tickets that are scanned at the turnstiles rather than the commuter scanning them with their phones.

While this is a good move in the interim, it would be good to see BMTC implement a full-fledged card-based payment system, on the lines of the NCMC.

The unintended side-effects of this move

The QR code idea, however has its merits. The direct consequence would be more people adopting UPI as a payment method over physical cash systems. Commuters using UPI would mean that anyone remotely connected to the BMTC network –from a food vendor at the bus station to a tea stall frequented by staff – would start accepting UPI as a payment method. The entire “Local Economy” would end up making use of it over time.

All in all, this is a much-needed push by BMTC. The next stop would be a complete integration on to the NCMC so that we can go truly cashless. Who knows, the next big thing may be transcos accepting USSD-based payments as well. Alternatively, BMTC needs to push for app-based payments, similar to what Ridlr offers for BEST where a user purchases a ticket with the app which in turn generates a four to six digit number. The commuter tells the number to the conductor, who validates it with the ETM.

BMTC finally goes cashless, and how.

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Once This Pandemic Is Over, We Should Look At How We Transact

The last few weeks have been rather worrisome for many businesses due to the ongoing Covid-19 pandemic, not only because of the state of the economy but because they deal primarily in cash. A government notification in March also advised users to avoid cash and instead digital platforms as a safety measure. Viral videos on popular social platforms of people licking currency notes and wiping their noses with them has furthered the paranoia.

When Prime Minister Narendra Modi announced demonetisation in 2016, it did lead to a boom in digital transactions, especially with wallets such as Paytm but eventually with Google getting onto the Unified Payments Interface (UPI) bandwagon, cashless payments began to soar. As per data from the National Payments Corporation of India (NPCI), the UPI platform witnessed a record ₹1.31 billion in transactions in December 2019 with the total transaction value exceeding ₹2 trillion.

While demonetisation did not give digital transactions the necessary push – most people returned to cash once the shortage had ended – the ongoing pandemic may inadvertently do just that. A 2009 CNN report said that nearly 90 per cent of American currency had traces of cocaine on them. Given that hygiene is not a big issue in India yet, one can imagine the kind of substances that are present on Indian currency – it doesn’t have to be opioid, just dirt and germs.

This would be an ideal time for the government to slowly push for more digital transactions. With the 2019 Union budget doing away with merchant charges for merchants with an annual turnover of above ₹50 crore, the time is ripe for us to rethink stepping into the digital world. The sentiment isn’t restricted to India alone. An Op-Ed on Bloomberg highlights why Apple Pay is looking like a good alternative in the United States to both cash and credit cards. While Apple Pay is yet to enter India, we already have a host of digital payments systems, most of which are based atop NPCI’s UPI platform while some retain independent wallet-based mechanisms of their own.

The biggest hurdle however will continue to be the lack of banking access for many. A 2016 report by PriceWaterhouseCoopers stated that the number of Indians without a bank account went down from 557 million in 2011 to 233 million in 2015. Of these, 187 bank accounts were opened under the Pradhan Mantri Jan Dhan Yojaya (PMJDY) alone. While many of these accounts haven’t been used much since their opening, that is not a problem. While urban India can be persuaded to switch to UPI-based platforms, rural India can use the NPCI’s National Unified USSD Platform (NUUP)or *99# service that works with basic phones for smaller transactions. For those who don’t have mobile phones, the RuPay debit card is always there.

In order to start the shift to digital transactions, the challenge would not be with larger players but the smaller ones. The local grocer, tea stall and bakeries are what need to be targeted. Add to that the discounts offered by UPI apps such as Google Pay, Paytm or KhaaliJeb – the latter offers discounts to students – getting more people on the platform is relatively easier.

The next step would be to target the transit sector. While rail is generally covered with the Unreserved Ticketing System (UTS) app and metro rail is covered by smart cards and app-based systems, the focus should be on buses. Very few cities have managed to go completely digital in the field of bus ticketing, with Mumbai being the shining example. In order to better facilitate this, the Centre needs to rush the much-delayed National Common Mobility Card (NCMC) that was announced yet again in 2018. While urban bus services are easier to handle, the rural sector needs be prioritised as that is what will lead to a mass movement.

By targeting specific sectors, the financial sector has a higher chance of success rather than a generalised approach. In order to incentivise the shift, the Reserve Bank of India may need to slash a few transaction charges like 2016. Once the shift reaches critical mass, a sunset policy for incentives need to take over. Countries like Sweden allow traders and retailers to refuse cash under the Freedom of Contract and this needs to find a way into our legislation as well.

The biggest advantage of going cashless – not counting the associated risks of handling dirty money – is that it eliminates small loses in the form of lose change going missing. In the long run, it paves the way for the government to finally look at slowly doing away with Income Tax and replacing it with a Transaction Tax.

The ongoing pandemic has given us opportunities to take things forward to a new level, albeit unintentionally, and we should seize the moment and get things done.

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BEST: Old Notes Can Be Used For Bus Passes

BEST today has announced that the old ₹500, and ₹1000 notes can be used till 24-11-16 to buy Bus Passes/Renew Bus Passes.

The higher value notes, that had been pulled out of circulation for most purposes on 08-11-16, were to be valid in Government Hospitals, as well as to buy air tickets, railway tickets and bus tickets at airports, railway stations and bus terminals of State Transport Undertakings respectively.

BEST announced this by sending a text message to existing passholders and prepaid card holders.

SMS from BEST notifying that Old Currency of ₹500 and ₹1000 can be used for bus passes.
SMS from BEST notifying that Old Currency of ₹500 and ₹1000 can be used for bus passes.

While the demonetisation of notes presents us with a great opportunity to go cashless, it will take time to start.

For a list of Point of Sale (PoS) Counters from where you can Buy/Recharge/Renew Bus Passes and ePurse Prepaid cards, please refer to Page 11 of this document.

Note: You will be required to provide your Name, Address, Phone Number along with the Serial Number of the notes.

Read: Going Cashless In Transit: Blurring The Line Between Digital And Physical Approach by Srikanth Ramakrishnan on Swarajya

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