Payment Infrastructure Development Fund in India

Payment Infrastructure Development Fund (PIDF) is a scheme announced by the Reserve Bank of India (RBI), with a major contribution from the central bank itself, to build the quantity of multi-overlap acknowledgement devices in the country. The scheme is supposed to help the obtaining banks/non-banks and vendors by bringing down generally speaking acknowledgement framework cost. The PIDF scheme is an important scheme introduced by the Reserve Bank of India to subsidise the deployment of payment acceptance infrastructure. The advisory council manages the PIDF scheme. The outlay of the newly launched Payment Infrastructure Development Fund is very vast and a matter of importance. 

The PIDF Scheme

The PIDF scheme is valid for three years. The validity of the Payment Infrastructure Development Fund scheme started on January 1, 2021. If necessary, the validity of PIDF can be extended to two further years. The PIDF scheme is operationalised by the Reserve Bank of India (RBI). The head of the Payment Infrastructure Development Fund is the Chairman of the Payments Council of India. The PIDF scheme includes eligible street vendors covered under PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi Scheme) in Tier-1 and Tier-2 centres.

Execution of schemes under PIDF will be observed by RBI, and MRO with help from Card organisations, Indian Banks’ Affiliation (IBA), and Instalments Gathering of India (PCI). The asset will be utilised to sponsor banks and non-banks for conveying an instalment framework, which will be dependent upon explicit targets being accomplished. The centre will focus on those vendors who are yet to be terminated, i.e., shippers who have no instalment acknowledgement device. Different instalment acknowledgement devices/infrastructure supporting fundamental card instalments, like actual PoS, mPoS (versatile PoS), GPRS (General Bundle Radio Assistance), PSTN (Public Exchanged Phone Organization), QR code-based instalments, and so on. The Air conditioner will devise a straightforward component for allotment of focuses to getting banks/non-banks in various fragments/areas. An appropriation of 30% to half of the expense of actual PoS and a half to 75% sponsorship for Advanced PoS will be advertised. This appropriation will be allowed on a half-yearly premise, after guaranteeing that exhibition boundaries are accomplished, including conditions for the dynamic status of the acknowledgement gadget and least utilisation rules, as characterised.

The choice to extend the designated recipients under the PIDF plan will give a fillip to Save the RBI’s endeavours towards advancing computerised exchanges at the grass-root level.

Features Of The PIDF Scheme

The main features of the PIDF Scheme are the following.

• The main focus of the PIDF scheme will be to make payment acceptance infrastructure in Level 3 to Level 6 centres. 

• North Eastern conditions of the nation will be given exceptional concentration. 

• While setting boundaries for use of assets, the centre will be to focus on those dealers who are yet to be terminated

• RBI will contribute Rs 250 crore to the corpus; the approved card networks will contribute all Rs 100 crore

• The card giving banks will likewise add to the corpus given the card issuance volume (covering both charge cards and Mastercards) at the pace of Rs 1 and Rs 3 for every charge and Mastercard given by them, separately.

Objectives of PIDF

urging acquirers to send retail location (PoS) infrastructure, both physical and computerised, in level 3 to level 6 communities and northeastern states is the main objective of the Payment Infrastructure Development Fund. Extending the acceptance infrastructure of advanced instalments past enormous urban areas and towns is also an objective of Payment Infrastructure Development Fund.

Governance of PIDF

Who is the head of PIDF and advisory council members should be known to everyone? Before knowing What is the total outlay of the newly launched PIDF, the governance of PIDF should be known. Payment Infrastructure Development Fund is governed by the Advisory Council (AC). The Advisory Council consists of the following officers.

• B.P. Kanungo, Deputy Governor, Reserve Bank of India

• Dilip Asbe, Chief Executive Officer, National Payments Corporation of India

• D Nageswara Rao, Chief General Manager, DFIBT, NABARD

• Ajay Michyari, Regional Director, Reserve Bank of India, Mumbai Regional Office

• Sunil Mehta, Chief Executive, Indian Bank’s Association

• Vishwas Patel, Chairman, Payments Council of India

• Shailesh Paul, Vice President, and Head Merchant Sales and Solutions, Visa

• R Vittal Raj, Chartered Accountant, Kumar & Raj Chartered Accountants

• Rajeev Kumar, Senior Vice President, Market Development, Mastercard

Conclusion

Payment Infrastructure Development Fund is an initiative of the Reserve Bank of India to the banks, non-banks and other vendors. Reserve Bank of India (RBI) has developed a composite Digital Payment Index (DPI) to catch the degree of digitisation of instalments the nation over. Who is the head of PIDF is a matter of importance for the success of the PIDF scheme. From the objectives, we can understand What is the total outlay of the newly launched PIDF. 2.46 lakh physical payment devices were installed in smaller towns under the PIDF scheme.