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RBI gives $66 million shot in the arm to remote payments infrastructure

RBI gives $66 million shot in the arm to remote payments infrastructure

The Reserve Bank of India is to contribute $33 million to the creation of a Payments Infrastructure Development Fund (PIDF) with the aim of improving the digital and physical point-of-sale infrastructure in remote regions of the continent.

Total cash going into the fund will amount to $66 million, with card issuing banks and card networks expected to match the RBI's investment.

The central bank says network operators and banks will be expected to make additional contributions to cover operational expenses, while the RBI will cover any yearly shortfall.

"Over the years, payments ecosystem in the country has evolved with a wide range of options such as bank accounts, mobile phones, cards, etc," states the RBI. "To provide further fillip to digitisation of payment systems, it is necessary to give impetus to acceptance infrastructure across the country, more so in underserved areas."

The PIDF will be governed through an Advisory Council and managed and administered by the Reserve Bank.

Comments: (1)

Hitesh Thakkar
Hitesh Thakkar - SME - Fintech startups (APAC and Africa) - India 08 June, 2020, 14:06Be the first to give this comment the thumbs up 0 likes

This may be the first of those steps by reguator for Zero MDR regime on POS in India.