IAS Gyan

Daily News Analysis

Digital payment index

6th January, 2021 Economy

Context: 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 RBI-DPI 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.
  • The RBI-DPI comprises five broad parameters,that enable the measurement of deepening and expansion of digital payments in the country over different time periods.
  • These parameters are including Payment Enablers (weight 25%), Payment Infrastructure – Demand-side factors and (10%), Payment Infrastructure – Supply-side factors (15%), Payment Performance (45%) and Consumer Centricity (5%),”
  • Each of these parameters have sub-parameters which, in turn, consist of various measurable indicators.
  • Going forward, RBI-DPI shall be published on RBI’s website on a semi-annual basis from March 2021 onwards with a lag of 4 months.