New RBI Grade B 2025 Notification will come Soon! Enroll Here

    Question

    Which of the following Statements about the PIDF Scheme

    is / are True? I - The objective of the fund is to develop payment acceptance infrastructure in tier - 3 to tier - 6 cities ( centres ) , with a special focus on the north - eastern states of the country . II - The fund was operational for three years effective from 1st January, 2021 . III - The fund will be used to subsidize banks and non - banks for deploying payment infrastructure, which will be contingent upon specific targets being achieved .
    A Only I Correct Answer Incorrect Answer
    B Only I and II Correct Answer Incorrect Answer
    C Only III Correct Answer Incorrect Answer
    D All of the above Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    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.

    Practice Next

    Relevant for Exams: