Payment Infrastructure Development Fund (PIDF) scheme

Subject : economy

Section: Monetary Policy

Concept:

It was set up by the Reserve Bank of India to facilitate the development of payment acceptance infrastructure in tier-3 to tier-6 cities and north-eastern states.
Was launched in Jan, 2021 in consultation with major authorized card networks, to facilitate the development of payment acceptance infrastructure
It aims to provide financial assistance to eligible entities for setting up, extending and modernizing payment infrastructure across the country.
The scheme is expected to benefit both consumers and businesses by making digital payments more accessible and convenient.

Operationalization of the scheme:

RBI, with assistance from card networks, the Indian Banks’ Association (IBA), and the Payments Council of India (PCI), monitored the implementation of these targets.
RBI is responsible for operationalizing the scheme, with the Chairman of the Payments Council of India at the helm.
Subsidy of between 30% and 50% for physical Point-of-Sale (PoS) devices and 50% to 75% for digital PoS devices.