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Economy question from JKAS Prelims, 2023 by JKPSC

Consider the following statements regarding the Payment Infrastructure Development Fund(PIDF):

1. The Ministry of Finance set up a PIDF to encourage the adoption and deployment of Point-Of-Sale devices (POS).
2. The PIDF will be governed through an advisory council and managed and administered by the RBI.
3. The fund has been created to encourage the adoption of POS machines by businesses in all states including North-eastern states.

The correct answer/s is/are:

Last updated Jun 24, 2026
Correct Answer: Option B — 2 and 3 only
Analysis of the Statements

1. Set up by the Ministry of Finance (Incorrect)
The Payment Infrastructure Development Fund (PIDF) was actually set up by the Reserve Bank of India (RBI), not the Ministry of Finance. While the government supports digital themes, the PIDF is a specific central bank initiative launched in January 2021 to subsidize the deployment of payment acceptance infrastructure.

2. Governed by an Advisory Council and managed by RBI (Correct)
The fund is managed and administered by the RBI but is governed through an Advisory Council chaired by the RBI Deputy Governor (currently the one in charge of the Department of Payment and Settlement Systems).

3. Focus on all states including North-eastern states (Correct)
The primary goal of PIDF is to increase digital payments in Tier-3 to Tier-6 centers and the North-Eastern states. It provides subsidies to banks and non-bank financial companies (NBFCs) to deploy Point-of-Sale (PoS) infrastructure (both physical and digital, like QR codes).
Answer verified by Quintessence Classes faculty — Karan Nagar, Srinagar.
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JKPSC JKAS 2023 Prelims

Details

Exam JKPSC
Recruitment JKAS
Stage Prelims
Year 2023
Subject Economy
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