The Reserve Bank of India in its press release dated 5th June 2020 has announced the creation of a Payments Infrastructure Development Fund (PIDF) to encourage acquirers to deploy Points of Sale (PoS) infrastructure (both physical and digital modes) in tier-3 to tier-6 centers and northeastern states. The PoS machines allow businesses to accept e-payments, thereby, mitigating the need to deal in cash.
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.
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