PIDF scheme under PM SVANidhi
GS Paper - 3 (Economy)
Reserve Bank of India extended the scheme for encouraging deployment of Point of Sale (PoS) infrastructure to street vendors covered under the PM SVANidhi programme in tier 1 and 2 centres. The Payments Infrastructure Development Fund (PIDF) scheme, with a corpus of Rs 345 crore, envisages creating 30 lakh new touch points every year for digital payments in tier-3 to tier-6 centres.
- The scheme, operationalised in January this year, has now been extended to select street vendors in tier 1 and 2 centres.
- Launched in June 2020, the PM Street Vendor's AatmaNirbhar Nidhi (PM SVANidhi) scheme is aimed at helping street vendors impacted by the coronavirus pandemic to resume their livelihood activities.
- It facilitates collateral-free working capital loans of up to Rs 10,000 of one-year tenure to approximately 50 lakh street vendors.
- Reserve Bank of India (RBI) said it has now decided to include street vendors identified as part of the PM SVANidhi scheme in tier-1 and tier-2 centres as beneficiaries under the PIDF scheme.
- As hitherto, the street vendors in tier-3 to tier-6 centres will continue to be covered under the scheme.
- This decision to expand the targeted beneficiaries under the PIDF scheme will provide a fillip to the Reserve Bank's efforts towards promoting digital transactions at the grass-root level.
- PIDF seeks to increase payments acceptance infrastructure by adding 30 lakh touch points -- 10 lakh physical and 20 lakh digital payment acceptance devices every year.