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The Reserve Bank of India on Friday announced the creation of a ₹500 crore Payments Infrastructure Development Fund (PIDF) to encourage deployment of Point of Sale (PoS) infrastructure (both physical and digital modes) in tier-3 to tier-6 centres and the North-East.
The central bank, in a statement, said it will make an initial contribution of ₹250 crore to the PIDF covering half the fund and the remaining contribution will be from card-issuing banks and card networks operating in the country.
The PIDF will also receive recurring contributions to cover operational expenses from card-issuing banks and card networks. The Reserve Bank will also contribute to yearly shortfalls, if necessary.
The PIDF will be governed through an Advisory Council and managed and administered by the RBI.
“Over the years, the payments ecosystem in the country has evolved with a wide range of options such as bank accounts, mobile phones, cards, etc. To provide further fillip to digitisation of payment systems, it is necessary to give impetus to acceptance infrastructure across the country, more so in underserved areas,” the RBI said.
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