Reserve Bank of India today said it has constructed a composite Digital Payments Index (DPI) to capture the extent of digitization of payments across the country.
“The composite DPI has been constructed with March 2018 as the base period, either 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,” RBI said.
“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,” it added.
This index will accurately reflect the penetration and deepening of various digital payment modes.
RBI-DPI comprises of 5 broad parameters that enable measurement of deepening and penetration of digital payments in the country over different time periods, India’s apex bank said.
These parameters are – Payment Enablers (weight 25%), Payment Infrastructure – Demand-side factors (10%), Payment Infrastructure – Supply-side factors (15%), Payment Performance (45%), and Consumer Centricity (5%).
Each of these parameters has sub-parameters which, in turn, consist of various measurable indicators, RBI said.
Digital payments in India have been growing rapidly.
RBI, in February, had promised to construct and periodically publish composite DPI to capture the extent of digitization of payments effectively.