Now, a payment infra fund
ECONOMY & POLICY

Now, a payment infra fund

The Reserve Bank of India (RBI) recently announced the operationalisation of the payment infrastructure development fund (PIDF) scheme, in a bid to subsidise deployment of payment acceptance infrastructure in tier-3 to tier-6 centres, with the primary focus north-eastern states of the country. RBI prescribed details of contribution to the fund and has sought to incentivise the usage of payment devices.

Effective from 1 January 2021, the fund will be operational for three years and may be extended for two more years.

Merchants engaged in services such as government payments, transport and hospitality, fuel pumps, public distribution system (PDS) shops, healthcare, and grocery shops may be included, especially in the targeted locations.

Numerous payment acceptance devices and infrastructure supporting underlying card payments, such as mPoS, public switched telephone network (PSTN), physical Point Of Sale (PoS), GPRS , and QR code-based payments will be funded under the scheme.

After ensuring that performance criteria are met, including conditions for the ‘active’ status of the acceptance device and ‘minimum usage’ criteria, as defined by an RBI advisory council, the subsidy shall be granted on a half-yearly basis.

The minimum usage shall be called as 50 transactions over a span of 90 days and active status shall be minimum usage for 10 days over the 90-day span.

The subsidy claims shall be processed on a half-yearly basis, and 75% of the subsidy amount shall be released. The balance 25% shall be released later, depending on the device's status in three out of the four quarters of the ensuing year.

The scheme is on a reimbursement basis. The claim shall be submitted accordingly, only after making payment to the vendor. The maximum cost of physical acceptance devices eligible for the subsidy will be Rs 10,000, including one-time operating costs up to Rs 500. The maximum cost of digital acceptance devices eligible for a subsidy will be Rs 300, including a one-time operating cost up to Rs 200.

Target implementation shall be monitored by RBI with assistance from card networks, Payments Council of India (PCI) and the Indian Banks’ Association (IBA). Quarterly reports shall be submitted by acquirers on achieving the targets, to the RBI. Acquirers who meet or exceed their targets well in time and/or ensure greater utilisation of acceptance devices in terms of transactions shall be incentivised. Those who fail to achieve their targets shall be disincentivised, by scaling up or down the extent of reimbursement of subsidy.

Image Source

The Reserve Bank of India (RBI) recently announced the operationalisation of the payment infrastructure development fund (PIDF) scheme, in a bid to subsidise deployment of payment acceptance infrastructure in tier-3 to tier-6 centres, with the primary focus north-eastern states of the country. RBI prescribed details of contribution to the fund and has sought to incentivise the usage of payment devices. Effective from 1 January 2021, the fund will be operational for three years and may be extended for two more years. Merchants engaged in services such as government payments, transport and hospitality, fuel pumps, public distribution system (PDS) shops, healthcare, and grocery shops may be included, especially in the targeted locations. Numerous payment acceptance devices and infrastructure supporting underlying card payments, such as mPoS, public switched telephone network (PSTN), physical Point Of Sale (PoS), GPRS , and QR code-based payments will be funded under the scheme. After ensuring that performance criteria are met, including conditions for the ‘active’ status of the acceptance device and ‘minimum usage’ criteria, as defined by an RBI advisory council, the subsidy shall be granted on a half-yearly basis. The minimum usage shall be called as 50 transactions over a span of 90 days and active status shall be minimum usage for 10 days over the 90-day span. The subsidy claims shall be processed on a half-yearly basis, and 75% of the subsidy amount shall be released. The balance 25% shall be released later, depending on the device's status in three out of the four quarters of the ensuing year. The scheme is on a reimbursement basis. The claim shall be submitted accordingly, only after making payment to the vendor. The maximum cost of physical acceptance devices eligible for the subsidy will be Rs 10,000, including one-time operating costs up to Rs 500. The maximum cost of digital acceptance devices eligible for a subsidy will be Rs 300, including a one-time operating cost up to Rs 200. Target implementation shall be monitored by RBI with assistance from card networks, Payments Council of India (PCI) and the Indian Banks’ Association (IBA). Quarterly reports shall be submitted by acquirers on achieving the targets, to the RBI. Acquirers who meet or exceed their targets well in time and/or ensure greater utilisation of acceptance devices in terms of transactions shall be incentivised. Those who fail to achieve their targets shall be disincentivised, by scaling up or down the extent of reimbursement of subsidy. Image Source

Next Story
Infrastructure Transport

Tata, Airbus to Build India’s First Private Helicopter Line

In a landmark development for India’s aerospace sector, Tata Advanced Systems Limited (TASL) and Airbus will establish the country’s first private-sector helicopter assembly line in Vemagal, Karnataka. The facility will manufacture the Airbus H125 and H125M, marking a significant milestone in India’s push for self-reliance in aviation and defence manufacturing. The new Final Assembly Line (FAL) will produce the H125, the world’s best-selling single-engine helicopter, known for its versatility and performance in extreme environments. The first ‘Made in India’ H125 is expected to ro..

Next Story
Infrastructure Urban

NeGD to Support Bharat Taxi in Building Cooperative Ride Platform

In a significant move for India’s digital and mobility transformation, the National e-Governance Division (NeGD) of the Digital India Corporation, under the Ministry of Electronics and Information Technology (MeitY), has entered into an advisory partnership with Sahakar Taxi Cooperative Limited, the company behind Bharat Taxi — a first-of-its-kind, cooperative-led national ride-hailing platform. A Memorandum of Understanding (MoU) has been signed between NeGD and Sahakar Taxi to provide strategic advisory and technical support covering key areas such as platform integration, cybersecurity..

Next Story
Technology

MeitY Hosts Pre-Summit for India–AI Impact Summit 2026

The Ministry of Electronics and Information Technology (MeitY), Government of India, hosted a series of Pre-Summit events for the upcoming India–AI Impact Summit 2026 at the India Mobile Congress (IMC) 2025 in New Delhi. These sessions mark a key milestone ahead of the main summit, scheduled for 19–20 February 2026 at Bharat Mandapam, New Delhi. Delivering the inaugural address, S. Krishnan, Secretary, MeitY, highlighted India’s innovative and frugal approach to AI development. “We have adopted innovative means by learning from others’ experiences to build projects and products that..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?