RBI’s Digital Payments Index

RBI’s Digital Payments Index Latest News

The Reserve Bank of India’s (RBI) digital payments index (DPI) rose to 465.33 as of September 2024, compared to 445.5 in March 2024, reflecting the rapid adoption of digital payments in the country.

About RBI’s Digital Payments Index

• It has been constructed by the RBI to measure the extent of digitisation of payments across the country.
• It is based on multiple parameters and reflects the expansion of various digital payment modes accurately.
• It is a first-of-its kind index to measure the spread of digital payments across the country.
• It was first launched in January 2021.
• The DPI index indicates the extent of digitisation of payments across the country.
• Base Year of RBI’s Digital Payments Index: It has been constructed with March 2018 as the base period, i.e., the DPI score for March 2018 is set at 100.
• The DPI index comprises five broad parameters that enable the measurement of deepening and penetration of digital payments in the country over different time periods. The parameters include:
  • Payment enablers (25 per cent weightage in the index)
  • Demand-side and supply-side payment infrastructure factors (10 per cent each) 
  • Payment performance (45 per cent) 
  • Consumer centricity (5 per cent) 
• Each of the parameters has sub-parameters, which, in turn, consist of various measurable indicators.

RBI’s Digital Payments Index FAQs

Q1. What is the DPI index?

Ans. The RBI constructed a composite Digital Payments Index (DPI) to capture the extent of digitisation of payments across the country.

Q2. What are the three foundational pillars of the digital economy?

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Ans. The three pillars of the digital revolution: data, talent and innovation

Q3. Who released the digital payment index?

Ans. The Reserve Bank of India’s (RBI)

Source: BS