PIDF Scheme and PM Vishwakarma scheme

• Reserve Bank Governor said it has been decided to include PM Vishwakarma under the Payments Infrastructure Development Fund (PIDF) Scheme.
• Also the tenure of the PIDF scheme has been extended by another two years till 2025.

ABOUT PIDF SCHEME

• Operationalised in January 2021, the PIDF Scheme aims at incentivising the deployment of payment acceptance infrastructure such as physical Point of Sale (PoS), Quick Response (QR) codes in tier-3 to tier-6 centres, north-eastern states and Union Territories of Jammu & Kashmir and Ladakh.
• As per the original plan, the tenure of PIDF scheme was fixed for three years till December 2023.
• As at end-August 2023, over 66 crore new touch points have been deployed under the scheme.
• Also, it is proposed to include beneficiaries of PM Vishwakarma Scheme in all centres under the PIDF Scheme.
• This decision to expand the targeted beneficiaries under the PIDF scheme will provide a fillip to the Reserve Bank’s efforts towards promoting digital transactions at the grassroots level.

ABOUT PM VISHWAKARMA SCHEME

• PM Vishwakarma scheme proposes to offer up to 8% subsidy for loans given to artisans.
• The scheme provides collateral-free loans up to ₹Rs 3 lakh to artisans at a very affordable interest rate of 5%.
• The scheme covers artisans related to 18 fields, including carpenter, goldsmith, blacksmith, mason, stone sculpture, barber and boatmakers.
• Initially, ₹1 lakh loan will be given and the beneficiary would be eligible for an additional ₹2 lakh after repayment schedule of 18 months.
• The components of the scheme will include not only financial support but also access to advanced skill training, knowledge of modern digital techniques and efficient green technologies, brand promotion, linkage with local and global markets, digital payments, and social security.