The Reserve Bank of India (RBI) on Friday announced the creation of a Rs 500-crore 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 as also in northeastern states.

The central bank will chip in with an initial contribution of Rs 250 crore, it said in a statement, with the remaining contribution coming from card-issuing banks and card networks operating in the country. The PIDF will also receive recurring contributions to cover operational expenses from the banks and card networks. The RBI will also contribute to yearly shortfalls, if necessary. #casansaar