Published: 8th Jan, 2022
What is Digital Payments Index?
- It is a semiannual index published by RBI with an aim to capture the extent of digitization of payments across the country.
- The index consists of 5 broad parameters which have sub-parameters which, in turn, consist of various measurable indicators. The major 5 broad parameters are -
- Payment Enablers- 25%
- Payment Infrastructure: Demand-side factors (10%)
- Payment Infrastructure: Supply-side factors (15%)
- Payment Performance- (45%)
- Consumer Centricity- (5%)
- Each indicator has various sub-parameters as listed in table below-
|
Payment Enablers |
Payment Infrastructure- Demand-side factors |
Payment Infrastructure- Supply-side factors |
Payment Performance |
Consumer Centricity |
|
25% |
10% |
15% |
45% |
5% |
|
Internet |
Debit cards |
Bank Branches |
Digital Payments Systems-Volume |
Awareness and education |
|
Mobile |
Credit cards |
Business Correspondents |
Digital Payments System-Value |
Declines |
|
Aadhar |
Prepaid Payment Instruments |
ATMs |
Unique Users |
Complaints |
|
Bank Accounts |
Customers registered-Mobile and Internet Banking |
PoS terminals |
Paper Clearing |
Frauds |
|
Particpants |
FASTag |
QR Codes |
Currency in Circulation |
System Downtime |
|
Merhants |
|
Intermediaries |
Cash withdrawals |
|
Key findings from the latest DPI-
- The base period for the index is March 2018 e. DPI score for March 2018 is set at 100. The score for succeeding years are-
- March 2018 – 100
- March 2019 - 153.47
- March 2020 - 207.84
- March 2021 - 270.59
- The significant growth in the index represents the rapid adoption and deepening of digital payments across the country in recent years.
|
Question- Digital payment index by RBI has provided an opportunity to measure the penetration of digital payments in the country. Discuss the features of the index, recent findings and measures to promote digital payment in India. |
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