Payments Infrastructure Development Fund (PIDF)
- June 6, 2020
- Posted by: admin
- Category: DPN Topics
The Reserve Bank of India is going to create Rs 500-crore 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 as also in northeastern states.
- Half of the fund will be initially contributed by RBI
- The remaining contribution of the fund will be from card-issuing banks and card networks operating in the country.
- The fund will be governed through an Advisory Council and managed and administered by RBI.
- The fund will also receive recurring contributions to cover operational expenses from card-issuing banks and card networks.
- RBI will also contribute to yearly shortfalls, if necessary.
Need for the fund:
- Due to the high cost of merchant acquisition and installation the majority of POS terminals in the country are concentrated in Tier-1 and 2 cities and towns, leaving other regions behind.
- This fund will make the economics more favourable and will significantly increase the merchant base accepting digital payments