Monday, 10 August 2020

RBI announces creation of Payments Infrastructure Development Fund

The Reserve Bank of India (RBI) announces creation of a Payments Infrastructure Development Fund (PIDF) to encourage acquirers to deploy point of sale (POS) infrastructure, both physical and digital modes, in tier-3 to tier-6 centres and north eastern states.

Over the years, the payments ecosystem in India has evolved with a wide range of options, such as bank accounts, mobile phones, cards and others. To provide further fillip to digitisation of payment systems, the central bank finds it necessary to give impetus to acceptance infrastructure across the country, more so in underserved areas.

RBI will make an initial contribution of $33 million (INR 250 crores) to the PIDF covering half the fund and the remaining contribution will be from card issuing banks and card networks operating in the country. The PIDF will also receive recurring contributions to cover operational expenses from card issuing banks and card networks. India’s central bank will also contribute to yearly shortfalls, if necessary.

The PIDF will be governed through an Advisory Council and managed and administered by RBI.

Re-disseminated by The Asian Banker