Payment Infrastructure Development Fund (PIDF) scheme
Part of: GS Prelims and GS-III – Economy
- The RBI recently announced the operationalisation of the payment infrastructure development fund (PIDF) scheme.
- 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.