Categories: Banking

RBI launches “Payments Infrastructure Development Fund”

Payments Infrastructure Development Fund (PIDF) has been created by the Reserve Bank of India. The fund has been created to encourage acquirers to deploy Points of Sale (PoS) infrastructure, both physical as well as digital modes, in tier-3 to tier-6 centres and in north eastern states. With this fund, RBI is aiming to provide impetus to acceptance infrastructure across India especially in underserved areas in order to stimulate the digitisation of payment systems. RBI will be responsible for managing and administering the PIDF, while it would be governed through an Advisory Council.

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In the newly launched Payments Infrastructure Development Fund (PIDF), an initial contribution of Rs 250 crores will be made by the Reserve Bank of India i.e. covering half the fund, while the remaining contribution will be from card issuing banks and card networks operating in the country. The fund will also get recurring contributions from card issuing banks and card networks in order to cover operational expenses.

Important takeaways for all competitive exams:

  • RBI 25th Governor: Shaktikanta Das; Headquarters: Mumbai; Founded: 1 April 1935, Kolkata.

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