RBI extends Payments Infrastructure Development Fund scheme till 2025

New Delhi, Dec 29, 2023 

Apart from physical and digital devices, Soundbox devices and Aadhaar-enabled biometric devices have been made eligible for subsidy under the PIDF scheme

The Reserve Bank of India (RBI) on Friday extended the Payments Infrastructure Development Fund (PIDF) scheme till December 31, 2025. The scheme was first launched in 2021 for three years.

Under the scheme, the main focus of the RBI is to increase the number of payment acceptance devices in the country. It was primarily launched to facilitate and subsidise the development of payment acceptance infrastructure in tier-3 to tier-6 cities and the northeastern states of India. It envisaged creating 3 million new touchpoints every year in India. Jammu & Kashmir and Ladakh are also the focus areas.

The PIDF scheme provides financial assistance to banks and non-bank financial companies (NBFCs) for the deployment of point-of-sale terminals and other payment acceptance infrastructure in eligible regions.

The RBI on Friday also said that the beneficiaries of the PM Vishwakarma Scheme across the country would now be included as merchants for deployment under the PIDF Scheme. "All eligible installations since the inception of the PM Vishwakarma Scheme, i.e., September 17, 2023, may prefer claims under the PIDF Scheme," it said.

Moreover, apart from physical and digital devices, Soundbox devices and Aadhaar-enabled biometric devices have been made eligible for subsidy under the scheme for installations made from October 1, 2023.

The central bank also said that the amount of subsidy for devices deployed in special focus areas, including North Eastern States, Jammu & Kashmir and Ladakh, has been increased from 75 per cent to 90 per cent of the total cost. This will be irrespective of the type of device and for installations made from October 01, 2023 onwards.

The PIDF scheme is funded by the RBI and the major authorised card networks in India.

[The Business Standard]