The RBI has created a Payments Infrastructure Development Fund (PIDF).
To encourage acquirers to deploy Points of Sale (PoS) infrastructure Both physical and digital modes In tier-3 to tier-6 centres and North-Eastern States.

Payments Infrastructure Development Fund


ABOUT THE FUND
RBI will make an initial contribution of 1250 crores to the PIDF covering half the fund.
Remaining contribution will be from card issuing banks and card networks operating in the Country.
The PIDF will also receive recurring contributions to cover operational expenses from card issuing banks and card networks.
The RBI will also contribute to yearly shortfalls, if necessary. As of March 2020, according to data from the RBI.
There were close to 5.14 million active PoS devices deployed across the country.

EVOLUTION OF THIS IDEA
The idea of a PIDF or an Acceptance Development Fund was first proposed in March 2016.
The RBI published a concept paper aimed at expanding the card acceptance infrastructure in the country.
The paper said
“The main objective of the ADF program is to finance the cost of acceptance infrastructure such that it enables banks to speed up their merchant acquiring activities and increase penetration in both existing market segments as well as new markets.”
In October 2019
The RBI finally announced that it would create an Acceptance Development Fund(ADF) to increase the penetration of digital payments in specific areas of the Country.

Payments Infrastructure Development Fund