PM Vishwakarma to be included under PIDF scheme, says RBI, tenure of scheme extended by another two years

Digital Desk: On Friday, Reserve Bank Governor Shaktikanta Das said that it has been agreed to include PM Vishwakarma in the Payments Infrastructure Development Fund (PIDF) Scheme and to extend the scheme's duration by another two years.

The governor recommended extending the PIDF Scheme for another two years, until December 31, 2025, while introducing a bi-monthly monetary policy.

The PIDF Scheme, which will be operational in January 2021, aims to incentivize the deployment of payment acceptance infrastructure like as physical Point of Sale (PoS) and Quick Response (QR) codes in tier-3 to tier-6 cities, north-eastern states and Union Territories of Jammu & Kashmir and Ladakh.

However, the original design was for the PIDF system to last for three years, until December 2023.

Beneficiaries of the PM SVANidhi Scheme in Tier 1 and 2 centres, according to Governor Das, would be enrolled in the PIDF scheme in August 2021.

Over 2.66 crore new touchpoints have been installed under the project as of the end of August 2023.

''It is now recommended to prolong the PIDF Scheme for another two years, up to December 31, 2025. It is also suggested to include beneficiaries of the PM Vishwakarma Scheme in all PIDF Scheme centres,'' he said.

This decision to broaden the targeted beneficiaries under the PIDF plan will help the Reserve Bank's efforts to promote digital transactions at the grassroots level, he said.

In addition, he stated that, based on industry feedback, deployment of developing means of payment acceptance, such as soundbox devices and Aadhaar-enabled biometric devices, is recommended to be supported under the PIDF Scheme.

This is likely to speed and augment the deployment of payment acceptance infrastructure in the targeted locations, he said, adding that the changes will be communicated soon.

The PM Vishwakarma initiative, announced by Prime Minister Narendra Modi last month, seeks to subsidise loans to artisans by up to 8%.

The scheme offers collateral-free loans of up to Rs 3 lakh to artisans at a very low-interest rate of 5%.

The system includes carpenters, goldsmiths, blacksmiths, masons, stone sculptors, barbers, and boatbuilders, among others. Furthermore, the applicant would receive a Rs 1 lakh loan at first, with an extra Rs 2 lakh available after an 18-month repayment period.

The scheme's components will include access to advanced skill training, understanding of new digital techniques and efficient green technologies, brand marketing, connectivity with local and worldwide markets, digital payments, and social security.