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Payment Infrastructure Development Fund (PIDF) scheme

  • IASbaba
  • January 12, 2021
  • 0
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Payment Infrastructure Development Fund (PIDF) scheme

Part of: GS Prelims and GS-III – Economy

In news 

  • The RBI recently announced the operationalisation of the payment infrastructure development fund (PIDF) scheme.

Key takeaways

  • Objective: To subsidise deployment of payment acceptance infrastructure in tier-3 to tier-6 cities, with a special focus on the north-eastern states of the country.
  • An advisory council (AC) under the chairmanship of RBI deputy governor BP Kanungo has been constituted for managing the PIDF.
  • The fund will be operational for three years effective from January 1, 2021 and may be extended for two more years.
  • The implementation of targets shall be monitored by the RBI with assistance from card networks, the Indian Banks’ Association (IBA) and the Payments Council of India (PCI).

Do you know?

  • The PIDF presently has a corpus of Rs 345 crore, with Rs 250 crore contributed by the RBI and Rs 95 crore by the major authorised card networks in the country.
  • The authorised card networks shall contribute in all Rs 100 crore.
  • The card issuing banks shall also contribute to the corpus based on the card issuance volume.
  • Besides, the PIDF shall also receive annual contributions from card networks and card issuing banks.

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