Big update on PM Vishwakarma scheme! RBI joins govt in offering helping hand to artisans

The Payments Infrastructure Development Fund (PIDF) scheme has now been expanded to include PM Vishwakarma scheme beneficiaries, the Governor of the Reserve Bank of India Shaktikanta Das announced on Friday.

Prime Minister Narendra Modi unveiled the PM Vishwakarma initiative on September 17, 2023, which is a Central Sector Scheme designed to provide comprehensive assistance to skilled artisans and craftsmen who rely on their manual expertise and hand tools. This programme encompasses artisans and craftspeople engaged in 18 distinct trades, which include Carpenter (Suthar/Badhai), Boat Maker, Armourer, Blacksmith (Lohar), Hammer and Tool Kit Maker, Locksmith, Goldsmith (Sonar), Potter (Kumhaar), Sculptor (Moortikar, stone carver), Stone breaker, Cobbler (Charmkar)/Shoesmith/Footwear artisan, Mason (Rajmistri), Basket/Mat/Broom Maker/Coir Weaver, Doll & Toy Maker (Traditional), Barber (Naai), Garland Maker (Malakaar), Washerman (Dhobi), Tailor (Darzi), and Fishing Net Maker.

Payment Infrastructure Development Fund (PIDF

The Payment Infrastructure Development Fund (PIDF) is a fund set up by the Reserve Bank of India (RBI), in consultation with major authorised card networks, to facilitate the development of payment acceptance infrastructure in tier-3 to tier-6 cities and the north-eastern states of India. Union Territories of Jammu and Kashmir, and Ladakh (UTs of J & K and Ladakh) will also be given special focus.

Starting from January 1, 2021, the PIDF scheme has been activated to promote economic growth.

When establishing criteria for fund allocation, the primary objective will be to identify and assist merchants who have not yet adopted payment acceptance technology, specifically those who lack any payment acceptance devices. These merchants may be eligible to receive one physical and one digital acceptance device each through the program.

The Acquiring Committee (AC) will develop a transparent method for assigning targets to both acquiring banks and non-bank entities across various market segments and geographic locations.

Merchants providing essential services (transport, hospitality, etc.), government payments, fuel pumps, PDS shops, healthcare, kirana shops, street vendors, etc., may be covered, especially in the targeted geographies.

Initial Funding Pool

To kickstart nationwide terminalisation efforts and ensure sufficient coverage of payouts during the first year, it is imperative to establish a substantial initial corpus for the Payment Infrastructure Development Fund (PIDF). Contributions to the PIDF will be mandatory for both banks and card networks.

The Reserve Bank of India (RBI) will contribute Rs 250 crore to the corpus, while authorised card networks will collectively contribute Rs 100 crore.

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