RBI creates 'Payments Infrastructure Development Fund'

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SME Times News Bureau | 05 Jan, 2021
The Reserve Bank of India has created a 'Payments Infrastructure Development Fund' to encourage acquirers to deploy 'Points of Sale' infrastructure in tier-3 to tier-6 centres and northeastern states.

A PoS infrastructure can have physical or digital features to allow online payments for goods or services.

"Over the years, payments ecosystem in the country has evolved with a wide range of options such as bank accounts, mobile phones, cards, etc," the RBI said in a statement.

"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."

Accordingly, the Reserve Bank will make an initial contribution of Rs 250 crore to the PIDF, covering half the fund and 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. The Reserve Bank will also contribute to yearly shortfalls, if necessary," the statement said.

"The PIDF will be governed through an 'Advisory Council' and managed and administered by the Reserve Bank."