In addition to conventional physical and digital devices, the PIDF scheme now extends subsidy eligibility to include Soundbox devices and Aadhaar-enabled biometric devices.
The Reserve Bank of India (RBI) has extended the Payments Infrastructure Development Fund (PIDF) scheme until December 31, 2025, originally launched in 2021 for a three-year period. The scheme primarily focuses on increasing the number of payment acceptance devices nationwide, with an emphasis on tier-3 to tier-6 cities and the northeastern states of India. It aims to create 3 million new touchpoints annually, including a special focus on Jammu & Kashmir and Ladakh. Under the PIDF scheme, financial assistance is provided to banks and non-bank financial companies (NBFCs) for deploying point-of-sale terminals and other payment acceptance infrastructure in eligible regions.
Notably, beneficiaries of the PM Vishwakarma Scheme across the country are now included as merchants eligible for deployment under PIDF. Starting from October 1, 2023, the scheme has expanded its scope to include Soundbox devices and Aadhaar-enabled biometric devices for subsidy claims. The subsidy for devices deployed in special focus areas has been increased from 75% to 90% of the total cost, regardless of the device type. This aims to accelerate infrastructural development in the North Eastern states, Jammu & Kashmir, and Ladakh. Funded by the RBI and major authorized card networks in India, the PIDF scheme has undergone significant enhancements and inclusivity measures to support the deployment of diverse payment acceptance infrastructure across the country.
Inclusive Expansion: RBI Prolongs PIDF Scheme, Includes Biometric Devices
The Reserve Bank of India (RBI) extended the Payments Infrastructure Development Fund (PIDF) Scheme until December 2025, with an expanded scope that now includes sound box instruments and Aadhaar-enabled biometric devices. With a current corpus of Rs 1,026.37 crore as of November 30, 2023, the scheme aims to bolster payment infrastructure in smaller regions.
Operational since January 2021, PIDF has been actively deploying payment acceptance technology in tier-3 to tier-6 centers, North Eastern states, and Jammu and Kashmir. The RBI, in a recent statement, announced the extension of the PIDF scheme by an additional two years, up to December 31, 2025.
To broaden the reach of beneficiaries, individuals eligible under the PM Vishwakarma Scheme in all centers are now included as merchants under the PIDF scheme.
In an effort to further promote acceptance infrastructure, the PIDF scheme now allows sound box devices and Aadhaar-enabled biometric devices to be eligible for subsidy claims. This strategic move aims to enhance the diversity and inclusivity of supported payment acceptance technologies.
According to the announcement, the PIDF’s corpus reached Rs 1,026.37 crore as of November 30, 2023.
As of the same date, 3,99,089 physical devices and 91,99,972 digital devices have been deployed in tier 3 & 4 Centres under the PIDF Scheme. In tier 5 & 6 Centres, 3,23,236 physical devices and 1,47,48,608 digital devices have been deployed.
For Special Focus Areas (North-eastern States and UTs of J&K and Ladakh), the PIDF scheme has facilitated the deployment of 1,05,268 physical devices and 19,64,175 digital devices as of November 30, 2023.
In tier 1 & 2 Centres, 308 physical devices and 12,83,147 digital devices were deployed. Notably, to broaden the reach of beneficiaries and acceptance infrastructure, the RBI has included beneficiaries of the PM Vishwakarma Scheme, as well as Soundbox devices and Aadhaar-enabled biometric devices, as eligible for subsidy claims under the scheme.
Furthermore, the subsidy for special focus areas, including the North Eastern states and UTs of Jammu & Kashmir and Ladakh, has been standardized at 90 percent of the device cost, irrespective of the type of device.
The PIDF Scheme, operationalized by the RBI in January 2021 for three years, aims to encourage the deployment of payment acceptance infrastructure in tier-3 to tier-6 centres, North Eastern states.Since August 26, 2021, beneficiaries of the PM Street Vendor’s Atmanirbhar Nidhi (PM SVANidhi Scheme) in tier-1 and tier-2 centres are also covered under the scheme.
