GS Paper II

News Excerpt

In the age of technological advancements, India strides forward with the National Common Mobility Card (NCMC), a groundbreaking initiative poised to revolutionise travel experiences across the nation.

National Common Mobility Card (NCMC)

• Launched by the Ministry of Housing and Urban Affairs in March , 2019, under the Prime Minister's ‘One Nation, One Card' vision, the NCMC promises to simplify payment processes for transportation, toll taxes, and parking fees, consolidating various modes of travel onto a single platform.
• Devised to encourage cashless transactions and present a unified payment platform for commuters across the country, launched under the Prime Minister’s ‘One Nation, One Card’ initiative, the National Common Mobility Card (NCMC) is an interoperable transport card.
•   It allows holders to pay for multiple types of public transport, as well as withdraw money and do other retail payment applications, using a single card.
• Also, available as debit/credit/prepaid RuPay cards from 25+ partner banks, including Bank of India, State Bank of India, Punjab National Bank, and others.

Objective:

• The National Common Mobility Card is a step towards transforming and digitising India’s public transport system, making it more efficient and user-friendly.
• By reducing the need for multiple cards and cash transactions, the NCMC aims to not only streamline the travel experience but also promote a digital-first approach to daily transactions.

Key features of the NCMC:

•   Interoperability: The card is usable across various modes of transport nationwide, including metro, buses, suburban railways, and even toll and parking charges, eliminating the need for multiple cards.
•  Contactless transactions: Equipped with Near Field Communication (NFC) technology, the NCMC allows for tap-and-go payments, speeding up the transaction process.
• Secure transactions: Enhanced security features ensure that your transactions are safe and your privacy is protected.
•  Offline transaction capability: For low-value transactions, the card supports offline payments, reducing dependency on network connectivity for payments.
•  Multi-purpose use: Beyond transportation, the card can be used for retail purchases, making it a versatile tool for daily use.

NCMC Progress in implementation

•  Partial Implementation: While NCMC implementation has begun in certain cities and regions, full interoperability has not been achieved across all cities and states.
• Collaboration Dependency: The successful interconnection of NCMC cards relies on the collaboration and coordination between transportation operators and financial institutions in all parts of the country.
• Regional Adoption: Select transport operators in Delhi NCR, Ahmedabad, Surat, Bengaluru, Kochi, Mumbai, Nagpur, Pune, Chennai, etc. currently accept fare payments via NCMC, while many more public transport operators across the country are in various stages of planning/implementation to become NCMC compatible.

Challenges in implementation

•  Adoption Resistance: One significant hurdle is the low (or no) adoption by transport authorities across cities.
• For example-Metro Rail Corporations across India have smart cards in place along with mobile ticketing through online payment applications, which commuters find very convenient to use.
• Infrastructure and Integration Constraints: Inadequate infrastructure and technological integration have been hindering nationwide implementation.
• Lack of Switching Incentive: There is no ‘switching incentive’ for users or transport operators to move to NCMC.
• Certification Process Challenges: For issuers and terminal vendors, the certification process is time-consuming and financially demanding.
• Financial Burden of Card Replacement: Replacing existing RuPay cards with new NCMC cards also comes at a cost and either the issuer bank or the customer has to bear these expenses.

Conclusion

The National Common Mobility Card (NCMC) holds immense potential to revolutionize India's transportation payment system. Thus, addressing challenges through increased awareness, simplified onboarding, incentives,etc. can enhance NCMC's acceptance. With collaborative efforts, NCMC has the potential to redefine India's payment landscape, ensuring seamless and efficient travel experiences for all.