News Details- (Get Professional Updates on Whatsapp, Msg on
8285393786) More
News
RBI unveils guidelines for digital payment infra fund
PrintThe Reserve Bank of India (RBI) on Tuesday announced operational guidelines for the Payments Infrastructure Development Fund (PIDF) scheme, aimed at encouraging deployment of more digital payments infrastructure across tier-3 to tier-6 centres.
The fund will be used to subsidize banks and non-banks for deploying payment infrastructure, which will be contingent upon specific targets being achieved. The central bank said on Tuesday that it has constituted an advisory council under the chairmanship of B.P. Kanungo, a deputy governor, to manage the fund. The PIDF will be operational for three years from 1 January 2021, and may be extended for two more years based on progress. The fund has a corpus of Rs. 345 crore, of which Rs. 250 crore was contributed by RBI and ₹95 crore by authorized card networks operating in India.
The primary focus of the fund will be to create payments acceptance infrastructure in tier-3 to tier-6 cities, with a special focus on the northeastern states.
The advisory council will devise a “transparent mechanism for allocation of targets to acquiring banks, non-banks in different segments and locations". The primary targets of this scheme will be merchants providing essential services, such as transport and hospitality, government payments, fuel pumps, public distribution system (PDS) shops, healthcare facilities, and kiranas, especially those who do not have a payment acceptance device.
Multiple payments acceptance devices and infrastructure supporting card payments are covered under this scheme. These include physical PoS (point of sale terminals), mobile PoS, general packet radio service (GPRS), public switched telephone network (PSTN), and quick response (QR) code-based payments.
“As the cost structure of acceptance devices vary, subsidy amounts shall accordingly differ by the type of payment acceptance device deployed. A subsidy of 30% to 50% of cost of physical PoS and 50% to 75% subsidy for digital PoS shall be offered," RBI said.
Besides the initial corpus, the PIDF shall receive annual contributions from card networks and card-issuing banks. Card networks, such as Visa Mastercard and Rupay, will contribute 0.01 paisa per rupee of transaction. Card-issuing banks will give 0.01 paisa and 0.02 paisa per rupee of transaction for debit and credit cards, respectively, and ₹1 and ₹3 for every new debit and credit card issued, respectively, in the year.
“Implementation of targets under PIDF shall be monitored by RBI, the Mumbai regional office, with assistance from card networks, the Indian Banks’ Association, and Payments Council of India. Acquirers shall submit quarterly deployment reports on target achievements to RBI MRO," RBI said. PIDF, formerly the Acceptance Development Fund, was announced on 4 October 2019. “To increase digitization in these areas, as indicated in Payment System Vision Document 2021 of RBI, it has been decided to create ‘Acceptance Development Fund’ in consultation with stakeholders. The framework will be operationalized by December 2019," an October 2019 RBI note said.
The fund will be used to subsidize banks and non-banks for deploying payment infrastructure, which will be contingent upon specific targets being achieved. The central bank said on Tuesday that it has constituted an advisory council under the chairmanship of B.P. Kanungo, a deputy governor, to manage the fund. The PIDF will be operational for three years from 1 January 2021, and may be extended for two more years based on progress. The fund has a corpus of Rs. 345 crore, of which Rs. 250 crore was contributed by RBI and ₹95 crore by authorized card networks operating in India.
The primary focus of the fund will be to create payments acceptance infrastructure in tier-3 to tier-6 cities, with a special focus on the northeastern states.
The advisory council will devise a “transparent mechanism for allocation of targets to acquiring banks, non-banks in different segments and locations". The primary targets of this scheme will be merchants providing essential services, such as transport and hospitality, government payments, fuel pumps, public distribution system (PDS) shops, healthcare facilities, and kiranas, especially those who do not have a payment acceptance device.
Multiple payments acceptance devices and infrastructure supporting card payments are covered under this scheme. These include physical PoS (point of sale terminals), mobile PoS, general packet radio service (GPRS), public switched telephone network (PSTN), and quick response (QR) code-based payments.
“As the cost structure of acceptance devices vary, subsidy amounts shall accordingly differ by the type of payment acceptance device deployed. A subsidy of 30% to 50% of cost of physical PoS and 50% to 75% subsidy for digital PoS shall be offered," RBI said.
Besides the initial corpus, the PIDF shall receive annual contributions from card networks and card-issuing banks. Card networks, such as Visa Mastercard and Rupay, will contribute 0.01 paisa per rupee of transaction. Card-issuing banks will give 0.01 paisa and 0.02 paisa per rupee of transaction for debit and credit cards, respectively, and ₹1 and ₹3 for every new debit and credit card issued, respectively, in the year.
“Implementation of targets under PIDF shall be monitored by RBI, the Mumbai regional office, with assistance from card networks, the Indian Banks’ Association, and Payments Council of India. Acquirers shall submit quarterly deployment reports on target achievements to RBI MRO," RBI said. PIDF, formerly the Acceptance Development Fund, was announced on 4 October 2019. “To increase digitization in these areas, as indicated in Payment System Vision Document 2021 of RBI, it has been decided to create ‘Acceptance Development Fund’ in consultation with stakeholders. The framework will be operationalized by December 2019," an October 2019 RBI note said.
Category : RBI | Comments : 0 | Hits : 285
Get Free Daily Updates Via e-Mail on Income Tax, Service tax, Excise and Corporate law
Search News
News By Categories More Categories
- Income Tax Dept serves notices to salaried individuals for documentary proof to claim exemptions
- Bank Branch Audit 2021 - Update on allotment of Branches
- Bank Branch Audit 2020 Updates
- Bank Branch Audit 2021 Updates
- Bank Branch Audit 2020 - Update on Allotment of Branches
- Police Atrocities towards CA in Faridabad - Its Time to be Unite
- Bank Branch Statutory Audit Updates 2019
- Bank Branch Statutory Audit Updates
- Bank Branch Audit 2022 Updates
- Bank Branch Statutory Audit Updates
- NFRA Imposes Monetary penalty of Rs 1 Crore on M/s Dhiraj & Dheeraj
- ICAI notifies earlier announced CA exam dates despite pending legal challenge before SC
- NFRA debars Auditors, imposes Rs 50 lakh penalties for lapses in Brightcom, CMIL cases
- GST Important Update - Enhancement in the GST Portal
- NFRA Slaps Rs 5 lakh Penalty on Audit Firm for lapses in Vikas WSP Audit Case
- CBDT extends due date for filing Form 10A/10AB upto 30th June, 2024
- RBI comes out with FEMA regulations for direct listing on international exchange
- RBI directs payment firms to track high-value, fishy transactions during elections
- NCLT orders insolvency proceedings against Subhash Chandra
- Income Tax dept starts drive to dispose of appeals, 0.54 million at last count
- Payment of MCA fees –electronic mode-regarding
- Budget '11-12' Parliament Completes Approval Exercise
- Satyam restrained from operating its accounts
- ICICI a foreign firm, subject to FDI norms: Govt
- Maha expects Rs 15 crore entertainment tax revenue from IPL
- CAG blames PMO for not acting against Kalmadi
- No service tax on visa facilitators: CBEC
- Provision of 15-minutes reading and planning time allowance to the candidates of Chartered Accountants Examinations
- Companies Bill to be taken up in Monsoon Session
- File Service Tax Return in time as Maximum Penalty increased 10 times to Rs. 20000
Comments