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The Payment Infrastructure Development Fund ( PIDF ) is a fund set up by the Reserve Bank of India ( RBI ) , in consultation with major authorized card networks, to facilitate the development of payment acceptance infrastructure in tier - 3 to tier - 6 cities and north - eastern states of India . Starting from January 1, 2021, the PIDF scheme has been activated to promote economic growth for the next three years . The RBI is responsible for operationalizing the scheme, with the Chairman of the Payments Council of India at the helm . If need be, the scheme's validity can be extended for two more years, providing a longer - term outlook for financial progress . The fund will be used to subsidize banks and non - banks for deploying payment infrastructure, which will be contingent upon specific targets being achieved.
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