RBI announces creation of Payments Infrastructure Development Fund

June 5, 2020
Mumbai: The Reserve Bank on Friday announced the creation of a Payments Infrastructure Development Fund’ with an initial contribution of Rs 250 crore.

Accordingly, the 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 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.

“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.”

As per the statement, 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 statement said.

“The Reserve Bank will also contribute to yearly shortfalls, if necessary. The PIDF will be governed through an Advisory Council and managed and administered by the Reserve Bank.”IANS