Payments Infrastructure Development Fund (PIDF) Scheme: Extension and Enhancements
The Reserve Bank of India (RBI) has announced significant updates to the Payments Infrastructure Development Fund (PIDF) Scheme. As outlined in the RBI circular DPSS.CO.AD No.900/02.29.005/2020-21 dated January 05, 2021, the PIDF Scheme aims to boost the deployment of acceptance infrastructure across the country. The latest amendments, announced on October 06, 2023, extend the scheme’s duration by two years, now set to conclude on December 31, 2025. This extension comes with several enhancements designed to accelerate the deployment of payment acceptance devices.
One of the key enhancements includes the inclusion of beneficiaries from the PM Vishwakarma Scheme as merchants eligible for deployment under the PIDF Scheme. These installations, dating back to the inception of the PM Vishwakarma Scheme on September 17, 2023, are now eligible for claims under PIDF. This inclusion is expected to widen the scope and impact of the scheme, reaching more merchants across the country.
The PIDF Scheme has also expanded the range of subsidized devices. Previously focused on physical and digital categories, the scheme now includes contemporary devices such as soundbox devices, which offer instant audio payment confirmation along with payment acceptance via “scan & pay” and Near Field Communication (NFC). Additionally, Aadhaar-enabled biometric devices, which facilitate Aadhaar authentication for payments through BHIM Aadhaar Pay, are now eligible for subsidy if installed from October 01, 2023, onwards.
Another significant enhancement is the increased subsidy for devices deployed in special focus areas, including the North Eastern States and the Union Territories of Jammu & Kashmir and Ladakh. The subsidy for these regions has been raised from 75% to 90% of the total cost, regardless of the device type. This increase is expected to encourage more extensive deployment in these geographically and economically significant areas.
The overall objective of the PIDF Scheme remains to multiply the number of acceptance devices across India. By reducing the cost burden on acquiring banks, non-banks, and merchants, the scheme aims to add 30 lakh touchpoints annually. The scheme is governed by an ex-officio Advisory Council, with the Chief General Manager-in-Charge of the Department of Payment & Settlement Systems, RBI, serving as the secretariat.
The PIDF targets primarily Tier-3 to Tier-6 centers but also includes beneficiaries from PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi Scheme) and PM Vishwakarma Scheme in Tier-1 and Tier-2 centers. Special focus is given to regions like the North Eastern States and the Union Territories of Jammu & Kashmir and Ladakh.
The scheme’s success relies on a robust governance structure, a substantial initial corpus, and recurring contributions from card networks and issuing banks. These enhancements, alongside detailed guidelines incorporated into the PIDF framework, aim to create a more inclusive and extensive payment acceptance infrastructure across India.
