Digital Payments Index

Digital Payments Index

• Digital payments across the country registered a growth of 13.24% in a year through March 2023, as per RBI’s index that measures the adoption of online transactions. 
• RBI’s Digital Payments Index (RBI-DPI) stood at 395.57 at end-March 2023 compared to 377.46 in September 2022 and 349.30 in March 2022. 
• “The RBI-DPI index has increased across all parameters driven by significant growth in payment infrastructure and payment performance across the country over the period,” Reserve Bank of India (RBI) said in a statement on Thursday.

DPI

• The RBI-DPI comprises 5 broad parameters that enable measurement of deepening and penetration of digital payments in the country over different time periods.

5 Parameters:

• Payment Enablers (weight 25%),
• Payment Infrastructure – Demand-side factors (10%),
• Payment Infrastructure – Supply-side factors (15%),
• Payment Performance (45%) and
• Consumer Centricity (5%).
• It has been constructed with March 2018 as the base period, i.e. DPI score for March 2018 is set at 100.
• It will be published on RBI’s website on a semi-annual basis from March 2021 onwards with a lag of 4 months.

Read about “Har Payment Digital” Mission, click here

Practice Questions for Prelims

Who releases Digital Payment Index?
a) NITI AAYOG
b) Department of Economic Affairs
c) RBI
d) NPCI

Ans. c)

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