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The Reserve Bank of India’s composite Digital Payments Index (RBI-DPI) has risen to 349.30 in March 2022 against 270.59 in March 2021, indicating rapid adoption and deepening of digital payments across the country.
The RBI-DPI index has demonstrated significant growth, the central bank said in a statement. The index was at 304.06 in September 2021.
The RBI-DPI, which captures the extent of digitisation of payments across the country, has been constructed with March 2018 as the base period–DPI score for March 2018 is set at 100. The index was up at 153.47 in March 2019 and 207.84 in March 2020.
Parameters for measurement
The RBI-DPI comprises of 5 broad parameters that enable measurement of deepening and penetration of digital payments in the country over different time periods.
These parameters are – (i) Payment Enablers (weight 25 per cent), (ii) Payment Infrastructure – Demand-side factors (10 per cent), (iii) Payment Infrastructure–Supply-side factors (15 per cent), (iv) Payment Performance (45 per cent) and (v) Consumer Centricity (5 per cent).
Sub-parameters
Each of these parameters have sub-parameters which, in turn, consist of various measurable indicators. The sub-parameters under the “payment enablers” parameter are—internet, mobile, Aadhaar, bank accounts, participants and merchants.
The sub-parameters under the “payment infrastructure (demand side)” parameter are—debit cards, credit cards, prepaid payment instruments, customers registered–mobile and internet banking and FASTags.
The sub-parameters under the “payment infrastructure (supply side)” parameter are — bank branches, business correspondents, ATMs, PoS (point of sale) terminals, QR (quick response) codes and intermediaries.’
The sub-parameters under the “payment performance” parameter are—digital payment systems (volume), digital payment systems (value), unique users, paper clearing, currency in circulation and cash withdrawals.
The sub-parameters under the “consumer centricity” parameter are—awareness and education, declines, complaints, frauds, and system downtime.
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