RBI MPC member predicts ‘less severe’ high food inflation
The Reserve Bank of India (RBI) Monetary Policy Committee (MPC) member highlighted that going ahead, as India develops, the problem of high food inflation would be "less severe".
The Reserve Bank in India on Friday announced that it has setup a Rs 500-crore payments infrastructure development fund (PIDF) to subsidise deployment of points of sale acceptance infrastructure with an initial corpus of Rs 250 crore.
“The RBI has made an initial contribution of Rs 250 crore to the corpus of the fund covering half the fund and remaining contribution will be from card issuing banks and card networks operating,” the central bank said.
The move is part of the central bank’s payment systems vision 2019-21 which envisages creating an acceptance development fund – which rechristened the payments infrastructure development fund.
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“Over the years, payments ecosystem in the country has evolved with a wide range of options such as bank accounts, mobile phones, cards, etc,” RBI said in a press release adding, “to provide further fillip to digitisation of payment systems, it is necessary to give impetus to acceptance infrastructure across the country, more so in underserved areas.”
The fund will also receive additional contributions to cover operational expenses from card issuing banks and card networks. In addition to this, the central bank will also make payments to cover certain shortfalls.
The fund will be governed through an advisory council and managed and administered by the RBI.
The focus of the fund is to increase the acceptance infrastructure, both physical as well as digital modes, across the country with emphasis on tier III to tier VI centres and the northeastern states.
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