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DATA STORY : Digital Payments Index

  • 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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