What changed
The PIDF scheme, originally set to end December 2023, is now extended to December 31, 2025. New eligible devices include soundbox and Aadhaar-enabled biometric scanners for installations from October 1, 2023. Subsidy for special focus areas (North East, J&K, Ladakh) increases from 75% to 90% of device cost, irrespective of device type, for installations from October 1, 2023. PM Vishwakarma scheme merchants are now included as beneficiaries from its inception date September 17, 2023.
What it means for you
Banks and non-bank acquirers can claim subsidies for a wider range of modern payment devices, encouraging deployment in underserved areas. The higher subsidy in special focus regions reduces cost barriers, accelerating acceptance infrastructure growth. Including PM Vishwakarma merchants broadens the merchant base, supporting financial inclusion targets.
What you must do
- Update internal PIDF claim processes to include soundbox and Aadhaar biometric devices installed from October 1, 2023.
- Identify and onboard PM Vishwakarma scheme merchants to claim subsidies for eligible installations since September 17, 2023.
- Prioritize device deployment in special focus areas (North East, J&K, Ladakh) to leverage the increased 90% subsidy.
- Review and adjust annual deployment targets to align with the extended scheme timeline up to December 2025.
Who it affects
Card issuing and acquiring banks, Non-bank payment acquirers, Authorised card networks, Merchants, especially PM Vishwakarma beneficiaries, Payment device manufacturers and vendors
What is the new deadline for PIDF scheme claims?
The scheme is extended by two years, so claims can be made for eligible installations up to December 31, 2025.
Which new devices are now eligible for subsidy?
Soundbox devices with audio confirmation and NFC, and Aadhaar-enabled biometric scanners for BHIM Aadhaar Pay, installed from October 1, 2023, are eligible.
How does the subsidy change for special focus areas?
For North Eastern states, J&K, and Ladakh, the subsidy increases from 75% to 90% of total device cost for installations from October 1, 2023.