Reserve Bank of India announced the creation of Payments Infrastructure Development Fund

The Payments Infrastructure Development Fund (PIDF) has been formed by the Reserve Bank of India. The RBI has announced the creation of a Payments Infrastructure Development Fund to encourage subscribers to set up Point of Sale (POS) infrastructure (both physical and digital modes) in Tier 3 to Tier 6 centers and Northeast states.

The RBI’s goal from this fund is to emphasize the acceptance infrastructure to encourage digitization of payment systems across India, especially in undeserved areas. RBI, PIDF will be run through an advisory council and its management and administration will be administered by the Reserve Bank of India.

In the recently launched Payments Infrastructure Development Fund (PIDF), an initial contribution of Rs 250 crore will be made by the Reserve Bank of India, which will be one-half of the total amount and the remaining half is operated by the card issuing banks and the country. 

The card will be borne by the networks. PIDF will also receive recurring contributions from card issuing banks and card networks to cover operating expenses.