Jan 3, 2017

Metro halts plan for Paytm at 10 stations

DMRC managing director Mangu Singh had announced on December 23 that 10 low-footfall stations would conduct business solely through Paytm and “initially” have just one ticket counter to accept cash.

The plan had to be modified the following day as it drew sharp criticism over denying public transport to those without smartphones and access to the e-wallet.

The Delhi Metro’s plan to turn 10 stations “completely cashless” and introduce Paytm at the counters from January 1 had to be “deferred” after it drew flak from various quarters and a probe was ordered by Chief Minister Arvind Kejriwal to look into the decision. Sources in the Delhi government said the Metro was deferring the move till it cleared the matter with Kejriwal, who has come out in strong opposition. The Delhi government partially funds the Delhi Metro and therefore has a say in its working.

Officially, DMRC officials maintained that there was an “oversight” in understanding the RBI guidelines on such transactions, and that the volume of Paytm transactions might exceed the daily limit allowed on the app. The body also cited “unforeseen aspects”, such as inconvenience in making small transactions for single tickets, as reasons for the rollback.

“Over-the-counter cashless transactions have been deferred till we re-examine this issue. Application of e-wallets in present form are not suitable for our use due to large volume of transactions. Therefore, all other digital options of making payment over the counters are being re-examined. However, all existing aspects offered towards digitisation for commuters are continuing,” an official DMRC spokesperson said Monday.

“The DMRC, from time to time, has introduced various methods and means towards digitisation to avoid issues pertaining to shortage of change, overcharging, queues, etc on the Metro system. This special drive at 10 Metro stations was aimed at bringing awareness among commuters about the already available digital options on the system,” the spokesperson said.

DMRC managing director Mangu Singh had announced on December 23 that 10 low-footfall stations would conduct business solely through Paytm and “initially” have just one ticket counter to accept cash.

However, the plan had to be modified the following day as it drew sharp criticism over denying public transport to those without smartphones and access to the e-wallet.

The DMRC then clarified that at least one cash counter will be functional at all times. It also explained that Paytm was finalised after an open tender process.

Kejriwal had on Sunday questioned the move to permit only Paytm transactions, and suggested that it was being done at the behest of the Prime Minister.
Source - NDTV

 

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