RBI creates Payment Infrastructure Development Fund
On June 5, 2020, the Reserve Bank of India created Payment Infrastructure Development Fund of Rs 500 crores.
The apex bank has made an initial contribution of Rs 250 crores towards the funds. The rest of the fund is to come through the card issuing banks. The fund has been created to increase point of sale infrastructure and other digital payment infrastructure in the country. The funds are being allocated in line with the measures proposed in the vision document on payment and settlement systems in India 2019-21.
About the funds
The funds are to be governed through an advisory council. However, the funds will be administered and managed by RBI.
The Vision Document on Payment and Settlement Systems in India 2019-21 had envisaged the use of debit cards at Point of Sale transactions which is around 44% of total debit card transactions by 2021. The vision document estimated that by 2021, there will be around 5 million active Point of Sale.
The RBI also has plans and had suggested about Acceptance Development Fund. These funds are to be used to develop card acceptance infrastructure in cities and towns.
Month: Current Affairs - June, 2020