The Reserve Bank of India will be setting-up a Rs 500 crore Payments Infrastructure Development Fund (PIDF) in a bid to encourage deployment of Point of Sale (PoS) infrastructure (both physical and digital modes) in tier-3 to tier-6 centres and the North-East.
The central bank, in a statement, said it will be making an initial contribution of Rs 250 crore to the PIDF covering half the fund and the remaining portion will be through card-issuing banks and card networks operating in the country.
The PIDF will also be receiving recurring contributions to cover operational expenses from card-issuing banks and card networks. Besides, RBI will be contributing to yearly shortfalls, if necessary.
The PIDF will be governed via an Advisory Council and managed and administered by the RBI.
“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 digitisation of payment systems, it is necessary to give impetus to acceptance infrastructure across the country, more so in underserved areas,” the RBI said.