Payments Infrastructure Development Fund
Reserve Bank of India created Payments Infrastructure Development Fund with initial corpus of Rs 250 cr to boost digitization. Reserve Bank of India (RBI) has initiated with Rs 500-crore ($66 million) Payments Infrastructure Development Fund (PIDF with an initial contribution of Rs 250 crore). This fund has been created to encourage the adoption of ‘Points of Sale’ machines by businesses in tier-3 to tier-6 centres and Northeastern states. The remaining Rs 250 crore will be contributed by the card issuing banks and card networks working in India. The PoS machines allow businesses to accept e-payments, thereby, mitigating the need to deal in cash. Lately, the apex bank has been encouraging the adoption of e-payment modes.
Fund will continue to receive other capital at regular intervals:
- Payments Infrastructure Development Fund will continue to receive other cash contributions from card issuing banks and card networks at regular intervals to meet operating expenses.
- Reserve Bank of India will continue to look after the capital deficit on an annual basis, if required.
- This fund will operate under the supervision of the RBI & will be run by an Advisory Council.
Need to Create Payment Infrastructure Development Fund:
Over the years, payments ecosystem in the country has evolved. There are wide range of options in the payment such as bank accounts, mobile phones, cards, etc. To provide further incitement to digitisation of payment systems, it is necessary to give impetus to acceptance infrastructure across the country, more so in underserved areas.
About Reserve Bank of India:
Headquarters: Mumbai, Maharashtra
Formation: 1 April 1935
Governor: Shaktikanta Das
Deputy Governors: 4 (Bibhu Prasad Kanungo, Mahesh Kumar Jain, Michael Debabrata Patra, one is yet to be appointed).
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