RBI’s Digital Payments Index Rises in September 2023
Reserve Bank of India’s (RBI) Digital Payments Index, a measure of the extent of digitisation of payments across the country, increased to 418.77 in September 2023 from 395.57 in March 2023. “The RBI-DPI index has increased across all parameters and was driven particularly by growth in payment enablers, payment performance, and consumer centricity across the country over the period,” the central bank said in a release.
RBI’s Digital Payments Index
The RBI-DPI has been constructed with March 2018 as the base period, that is, the DPI score for March 2018 is set at 100. In September 2019, the index stood at 173.49, which rose to 217.74 in September 2020, and to 304.06 in September 2021.
Parameters of RBI-DPI
The RBI-DPI comprises five broad parameters that measure the penetration of digital payments in the country over different time periods. These parameters include:
- Payment Enablers (weight 25 per cent)
- Payment Infrastructure – Demand-side factors (10 per cent)
- Payment Infrastructure – Supply-side factors (15 per cent)
- Payment Performance (45 per cent)
- Consumer Centricity (5 per cent)
Publication Frequency
The central bank publishes the RBI-DPI on a semi-annual basis with a lag of four months.
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Month: Current Affairs - February, 2024
Category: Economy & Banking Current Affairs