PIDF scheme extended

• The Reserve Bank of India (RBI) has announced an extension of the Payments Infrastructure Development Fund (PIDF) scheme until December 31, 2025.
• This extension aims to continue fostering financial inclusion and supporting the country’s payment infrastructure.
• The corpus of PIDF stands at Rs 1026.4 crore as of November 30,2023.

ABOUT PIDF SCHEME

• Launched in January 2021 for a three-year period.
• The PIDF scheme is designed to offer financial aid to banks and non-bank financial companies (NBFCs) for the deployment of point-of-sale terminals and other payment acceptance infrastructure.
• It promotes digital payment infrastructure in tier-3 to tier-6 centers, northeastern states, and the UTs of Jammu & Kashmir and Ladakh.
• Beneficiaries of the PM Vishwakarma Scheme nationwide have been incorporated as merchants eligible for deployment under PIDF.
• PIDF is governed through an Advisory Council and managed and administered by RBI.

NEW CHANGES

• Sound Box devices and Aadhaar-enabled biometric devices are now eligible for subsidies under the scheme.
• The subsidy for specific focus areas, including the North Eastern states and Union Territories of Jammu & Kashmir and Ladakh, has been standardised at 90% of the device cost, irrespective of the device type.