RBI Expands PIDF Scheme to Boost Grassroots Digital Transactions

RBI Expands PIDF Scheme to Boost Grassroots Digital Transactions

VoM News Desk | October 6, 2023 | 10:19 PM IST | Breaking News | Follow on Google News

RBI Expands PIDF Scheme to Boost Grassroots Digital Transactions

RBI Expands PIDF Scheme to Boost Grassroots Digital Transactions

The Reserve Bank of India (RBI) has taken a significant step toward promoting digital transactions at the grassroots level by proposing an expansion of the Payments Infrastructure Development Fund (PIDF) Scheme. This initiative aims to include beneficiaries of the PM Vishwakarma Scheme and extend the PIDF Scheme’s tenure by two years, making it effective until December 31, 2025.

PIDF Scheme: Encouraging Payment Infrastructure

Launched in January 2021, the PIDF Scheme was designed to incentivize the deployment of payment acceptance infrastructure, including physical Point of Sale (PoS) and Quick Response (QR) codes. Its primary focus has been on tier-3 to tier-6 centers, northeastern states, and the Union Territories of Jammu & Kashmir and Ladakh. Originally scheduled to conclude in December 2023, the RBI’s proposal to extend its duration underscores its success and potential.

Expanding Beneficiaries: Inclusion of PM Vishwakarma

RBI Governor Shaktikanta Das revealed that beneficiaries of the PM SVANidhi Scheme in Tier-1 and 2 centers were integrated into the PIDF Scheme in August 2021, leading to the successful deployment of over 2.66 crore new touchpoints by August 2023. Now, the RBI seeks to include beneficiaries of the PM Vishwakarma Scheme across all centers within the PIDF Scheme. This move is set to further empower digital transactions at the grassroots level.

Embracing Emerging Payment Modes

The RBI’s commitment to fostering emerging payment acceptance methods is evident in its proposal to promote Soundbox devices and Aadhaar-enabled biometric devices under the PIDF Scheme. These developments are expected to accelerate the deployment of payment acceptance infrastructure in targeted regions. RBI Governor Shaktikanta Das has confirmed that these amendments will be formally notified in due course.

PM Vishwakarma Scheme: A Closer Look

The PM Vishwakarma Scheme, initiated by Prime Minister Narendra Modi, provides substantial subsidies of up to 8% on loans extended to artisans. Offering collateral-free loans of up to Rs 3 lakh at an incredibly affordable 5% interest rate, the scheme covers artisans from 18 diverse fields. Beneficiaries can initially access a loan of Rs 1 lakh, with the potential to secure an additional Rs 2 lakh after an 18-month repayment schedule. Beyond financial support, the scheme offers advanced skill training, knowledge of modern digital techniques, green technologies, brand promotion, access to local and global markets, digital payments, and social security.

The RBI’s decision to include PM Vishwakarma beneficiaries in the PIDF Scheme and extend its duration by two years signifies a significant stride in promoting grassroots digital transactions. It not only supports artisans in expanding their businesses but also contributes to the growth of the Indian economy.

VoM News Desk

VoM News is an online web portal in jammu Kashmir offers regional, National & global news.