Reserve Bank of India
Reserve Bank of India|File photo
Business & Economy

RBI announces creation of Payments Infrastructure Development Fund

NetIndian News Network

Mumbai, June 5, 2020

The Reserve Bank of India (RBI) today announced the creation of a Payments Infrastructure Development Fund (PIDF) to encourage acquirers to deploy Points of Sale (PoS) infrastructure (both physical and digital modes) in tier-3 to tier-6 centres and north-eastern states.

In a press release, the central bank said it would make an initial contribution of Rs 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.

"Over the years, 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 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 release said.

The PIDF will be governed through an Advisory Council and managed and administered by Reserve Bank, it added.