PM SVANidhi: RBI to Include Street Vendors of Tier 1 & 2 Cities as Beneficiaries under PIDF

Reserve Bank of India has extended scheme for encouraging deployment of point of sale infrastructure to street vendors covered under PM’s flagship scheme PIDF, as beneficiaries under its own Payments Infrastructure Development Fund Scheme. The street vendors who operate in Tier-1 & Tier-2 cities are falling under the ambit of the centre’s plan. 

PIDF, a scheme which had been announced by the RBI on January 5 this year, it is aimed at encouraging setting up of Point of Sale ( PoS or Digital transaction) infrastructure in tire 3 and tier 6 cities as well as in North Eastern States. 

According to the issued statement by the RBI yesterday, it was informed that the PIDF scheme will also include Street Vendors, which have been identified under Prime Minister’s street Vendors Atmanirbhar Nidhi (PM SVANidhi Scheme) in tier 1 and tier 2 cities. 

About PIDF: 

• The Payments Infrastructure Development Fund Scheme was launched primarily to increase the acceptance channels to keep pace with the issuances. The people of India were accustomed to the use of physical money. They withdraw their salary and then use the money at Kirana shops and roadside vendors. Why can’t they use the payments options directly with the merchants as well.

• This scheme envisaged to create 30 Lakh new touch points every year for digital payments. PIDF also aims to ensure that ecosystem grows together on the issuance, card network and acquiring side.

• It will help take the digitization of payments in to the hinterlands of the country.

• Out of the total corpus of Rs 345 crore allotted for the scheme, RBI’s contribution is Rs 250 Crore and Rs 95 Crore is from major authorized card networks in the country.