- Recently, the Reserve Bank of India (RBI)has announced the creation of a Rs. 500-crore Payments Infrastructure Development Fund (PIDF).
About the Fund
- This fund has been created to encourage acquirers to deploy point of sale (PoS) infrastructure, both physical and digital, in tier-3 to tier-6 centres and north eastern states.
- The fund will be governed through an advisory council but it will be managed and administered by the RBI.
- 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 setting up of this fund is in line with the recommendations of the report of the committee on deepening of digital payments, chaired by Nandan Nilekani.
- This move is expected to make the economics more favorable and will significantly increase the merchant base accepting digital payments.