Payments Infrastructure Development Fund (PIDF)

The RBI has created a Payments Infrastructure Development Fund (PIDF) with an outlay of Rs. 500 Cr.

Payments Infrastructure Development Fund (PIDF)

  • PIDF aims to encourage acquirers to deploy Points of Sale (PoS) infrastructure — both physical and digital modes in tier-3 to tier-6 centres and north eastern states.
  • The setting of PIDF is in line with the measures proposed by the vision document on payment and settlement systems in India 2019-2021.
  • It is also in line with the RBI’s proposal to set up an Acceptance Development Fund which will be used to develop card acceptance infrastructure across small towns and cities.

Its working

  • The PIDF will be governed through an Advisory Council and managed and administered by RBI.
  • It will also receive recurring contributions to cover operational expenses from card-issuing banks and card networks.
  • RBI will also contribute to its yearly shortfalls, if necessary.

Why need PIDF?

  • Over the years, the payments ecosystem in the country has evolved with a wide range of options such as bank accounts, mobile phones, cards, etc.
  • To provide further fillip to digitization of payment systems, it is necessary to give impetus to acceptance infrastructure across the country, more so in under-served areas.

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