RBI launches Digital Payments Index

RBI launches Digital Payments Index

BE/RBINOTE/01/2021

Rupee Notes

The Reserve Bank of India (RBI) has constructed a composite Digital Payments Index (DPI) to capture the extent of digitisation of payments across the country. The RBIDPI comprises of five broad parameters that enable measurement of deepening and pen.  The RBI­DPI has been constructed with March 2018 as the base period. The DPI for March 2019 and March 2020 work out to 153.47 and 207.84 respectively, indicating appreciable growth.

A report says that the RBI­DPI comprises five broad parameters which includes

  1. Payment Enablers,
  2. Payment Infrastructure
  3. Demand ­side factors and Supply-side factors
  4. Payment Performance  and
  5. Consumer Centricity

Each of these parameters has sub-parameters which, in turn, consist of various measurable indicators. The major sub-parameters under each parameter is available here. The RBI-DPI has been constructed with March 2018 as the base period, the central bank said.

DPI score for March 2018 is set at 100. The DPI for March 2019 and March 2020 work out to 153.47 and 207.84 respectively, indicating appreciable growth. Going forward, RBI-DPI will be published on the RBI’s website on a semi-annual basis from March 2021 onwards with a lag of four months, the central bank said. In February this year, the RBI had first announced the plan to launch the DPI.

The RBI and government have been pushing for digital transactions over the years to bring in more transparency and efficiency in the financial system. In that sense, the launch of DPI is a significant step.

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