New Delhi. The Reserve Bank of India (RBI) on Friday declared the creation of a Payments Infrastructure Development Fund (PIDF). The fund will be created with an initial contribution of Rs 250 crore. The fund will encourage traders from Tier-3 to Tier-6 centers and in Northeast, states to adopt Point of Sale (POS) machines.
Via POS machines, businesses can accept payments digitally.
Through the POS machine, businesses can accept payments digitally. This does not require them to handle cash. The Reserve Bank has been promoting the use of E-Payment systems in the country for some time.
Promoting POS use in backward areas is extremely pivotal.
RBI said in a statement that “Over the time many options have come up in the country’s payment ecosystem’. These include bank accounts, mobile phones, cards, etc. There is a need to promote the development of acceptance infrastructure across the country to further promote the digitization of payment systems. There is an even greater need to promote it, especially in backward areas.
Funds will be worth 500 crores
According to the statement of the Reserve Bank of India, the fund will be worth 500 crores. RBI will start it with an initial contribution of Rs 250 crore. The card-issuing banks and card networks working in the country will install the remaining half of the amount.
The fund will continue to receive other capital at regular intervals
As per the statement released by RBI, PIDF will continue to receive other cash contributions from the card-issuing banks and card networks at regular intervals to meet operating expenses. RBI will also continue to meet the capital deficit annually if required. The PIDF will operate under the supervision of the RBI. An Advisory Council will run it.