Digital Payment Index

Table of Contents☰

About Digital Payment 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 contains five broad parameters that measure the deepening and penetration of digital payments in the country over different time periods.
- Payment Enablers with a weight of 25% (Internet, mobile, Aadhaar, bank accounts, participants, merchants)
- Payment Infrastructure – Demand-side factors weight 10% (Debit and credit cards, PPIs, Customers registered in mobile and internet banking, FASTags),
- Payment Infrastructure – Supply-side factors weight 15% (Bank branches, BCs, ATMs, PoS Terminals, QR Codes, Intermediaries),
- Payment Performance – weight 45% (Digital payment volumes, value, unique users, paper clearing, currency in circulation, cash withdrawals) and
- Consumer Centricity weight – 5% (awareness and education, declines, complaints, frauds, system downtime).
The base period of the index is March 2018.
The index has been published on a semi-annual basis from March 2021 onwards with a lag of 4 months.

Q1) What is Aadhaar?

Aadhaar is a 12-digit unique identification number issued by the Unique Identification Authority of India (UIDAI), a statutory authority established by the Government of India. It serves as a proof of identity and address for Indian residents. Aadhaar is one of the largest biometric identification systems in the world.

Source: Digital payments grow 13.24% in FY23: RBI