RBI proposes to enhance subsidy amount, simplify claim process under PIDF scheme

The Reserve Bank of India (RBI) on June 8 proposed enhancing subsidy amount and simplifying claim process under the Payments Infrastructure Development Fund (PIDF) scheme. The proposed amendment will be notified shortly, the regulator said.

According to the RBI, the modifications are expected to further accelerate and augment the deployment of payment acceptance infrastructure in targeted geographies.

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The PIDF Scheme was operationalised by the central bank in January 2021 to incentivise deployment of Point of Sale machines(PoS), mPoS (mobile PoS), Quick Response (QR) codes in tier-3 to tier-6 centres and North Eastern States.

The initial target of the scheme was 90 lakh PoS terminals and Quick Response (QR) codes to be deployed over three years, or 2023 end. The target was achieved before deadline and as on April end, over 1.18 crore new touch points have been deployed under the Scheme.

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There has been an exponential rise in the number of credit card transactions in the country over the last few years, experts say.

As per an August report by PricewaterhouseCoopers (PwC), credit card issuances have grown at a compound annual growth rate (CAGR) of 20 percent in the last four years. The number of credit cardholders increased from 29 million in March 2017 to 62 million in March 2021