The government is working on bringing all types of public transport across the country under an integrated e-ticketing system that will allow passengers and owners to pay fares and other payments through one smart card.
Using this card, called “Rapid Pass”, one will be able to pay the fare of all public transports — road, railway, waterway and air — operated by public and private management across the country. The same card can also be used to pay road and bridge tolls, warehouse fees, parking facility fees, station locker fees, etc.
People will also be able to use it like a debit or credit card for various services, including shopping, utility bill payments, etc. The payment collected through the card will be distributed among the service providers through a payment clearing house.
The Road Transport and Highways Division (RTHD) recently published a draft of a law to deal with the management of integrated ticketing system and payment and sought opinions from the stakeholders before finalisation.
The aim of the draft law, titled “Integrated Ticketing System for Public Transport and Clearing House Management Act 2024”, is to ensure seamless, hassle-free service while travelling, transporting goods and receiving related services like parking, station lockers, warehouse services, etc.
The initiative will save time and ensure easy payment to build a Smart Bangladesh by facilitating transactions in the transport and non-transport sectors. It will also stop anarchy in the transport sector over fare collection.
The Rapid Pass is an initiative of the Dhaka Transport Coordination Authority (DTCA). They will control and implement the system. There will be a company formed by the government to manage the overall system. No other authority will be allowed to introduce a common ticketing system for mass transport.
The public transport operators will pay a commission to the authorities for using the clearing house for payment settlement.
What is in the law?
According to the draft law, Rapid Pass will be the country’s only smart card for automatic fare payment. No other authority will be allowed an automatic card system for fare collection. However, other digital payment service providers may integrate with DTCA’s Rapid Pass and clearing house system.
The Rapid Pass can be used as a debit/credit card that can be used to pay all tolls and charges of public transport, roads and bridges. In the case of non-transport services, the card can be also used for all kinds of debit/credit card functions like transactions, and money transfers, and even as a tool of mobile financial services.
Along with Bangladeshi citizens, foreigners visiting the country can also get the card and use it to avail of all services. Bangladeshi citizens will need to purchase a card by registering with their national identity card or birth certificate, and foreigners will need to register with their passports.
The card will be available at banks, transport operators and stalls of sales agents.
As the regularity authority, DTCA will operate the clearing house and own the Rapid Pass. However, they may create and appoint a company for the operation and management of the payment clearing house. The company will ensure the data safety of the users.
DTCA, however, may supply users’ information to other companies or persons in exchange for money.
In the future, the government might make Rapid Pass use mandatory for the mass transportation system and related services, according to the law. If anyone wants to pay the fare using the Rapid Pass, the public transport operator will be obliged to do that.
The owners or authorities of transportation will set up the necessary machines and technologies to facilitate the service.
Punishment
According to the draft law, a fine of up to Tk 10 lakh will be imposed if any transport operator, organisation or individual goes against the implementation process to use the Rapid Pass.
If they breach the agreement with the government, they will be fined up to Tk 20 lakh or handed down three years imprisonment or both. If any sales agent charges extra money from the users, they will face a fine of a maximum of Tk 10 lakh.
Separate company for Rapid Pass
According to the draft law, the government will form a company that will be responsible for the card and service. The company’s main goal will be generating revenue while prioritising public interest. DTCA will be a shareholder of the company and will be able to appoint directors.
The entity will be named Integrated Ticket System Management Company. There can be a public-private joint venture for the initiative where the government will invest 51 per cent and the private 49 per cent. But if no private entity shows interest, this company will be 100 per cent state-owned.
The company will have its headquarters in Dhaka and branches elsewhere.
The RTHD secretary will be the chair of the company’s board of governance. The government will appoint a retired additional secretary, age not more than 70 years, as the company’s managing director (MD) on contract. He will also serve as the chief executive officer.
The company will handle its expenditure from its funds, which will be collected from different sources including government allocation, sale of Rapid Pass, commission from transport owners, money collected through fines, selling shares, etc.
Apart from the RTHD secretary as the chairman, the company’s board will have 12 members. They are the DTCA executive director, the chairmen of Bangladesh Road Transport Corporation and Bangladesh Road Transport Authority, a joint secretary from the Finance Division, RTHD and railway and shipping ministries, a representative of Bangladesh Bank, a professor of computer science and engineering at Bangladesh University of Engineering and Technology or Bangladesh Computer Council’s executive director, a representative of the attorney general’s office, and the MDs of Dhaka Mass Transit Company Limited and Dhaka Bus Rapid Transit Company Ltd.
The company’s MD will also act as the member secretary of the board. In the case of joint venture, two representatives of private companies will be members of the board as well.
