With reference to Payment Infrastructure Development Fund PIDF scheme consider the following stateme...........

Economic and Social Issues Rural Banking and financial institutions

With reference to Payment Infrastructure Development Fund (PIDF) scheme, consider the following statements

The fund under this scheme will be used to subsidize banks as well as non-banks for deploying payment infrastructure.
The implementation of its targets shall be monitored by the RBI.

Select the correct statement.

1 only

2 only

Both

None

Recently, the Reserve Bank of India (RBI) has announced the operationalisation of the Payment Infrastructure Development Fund (PIDF) scheme.

Its objective 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.
An Advisory Council (AC) under the chairmanship of RBI deputy governor BP Kanungo has been constituted for managing the PIDF.
This fund will be used to subsidize banks and non-banks for deploying payment infrastructure, which will be contingent upon specific targets being achieved.
The Advisory Council will devise a transparent mechanism for allocation of targets to acquiring banks and non-banks in different segments and locations.
The implementation of targets shall be monitored by the RBI with assistance from card networks, the Indian Banks’ Association (IBA) and the Payments Council of India (PCI).

Hence both statements are correct.