RBI’s Digital Payments Index (RBI-DPI) Surges to 418.77 in September 2023

The Reserve Bank of India’s Digital Payments Index (RBI-DPI) surged to 418.77 in September 2023, showcasing a robust growth trajectory from 395.57 in March 2023 and 377.46 in September 2022. This remarkable uptick aligns with a 10.94% annual rise in digital payments by the end of March 2023, underscoring the increasing adoption of online transactions.

Driving Forces Behind RBI-DPI Surge

1. Payment Enablers Boost: The index’s ascent is attributed to significant advancements in payment enablers, highlighting the pivotal role played by facilitating mechanisms in the digital payment ecosystem.

2. Resilient Payment Performance: A substantial portion of the rise is attributed to enhanced payment performance, indicating the reliability and efficiency of digital transactions.
3. Consumer-Centric Growth: The index reflects a consumer-centric approach, with a 5% weightage, emphasizing the evolving preferences and satisfaction levels of users in the digital payment landscape.

4. Dynamic Payment Infrastructure: Both demand-side and supply-side factors of payment infrastructure contributed positively, with a combined weightage of 25%, showcasing a robust ecosystem supporting digital transactions.

Evolution of RBI-DPI

• Introduced in March 2018, the RBI-DPI serves as a foundational metric for gauging the digitization extent in payments nationwide.
• The composite index integrates five key parameters: Payment Enablers (25%), Payment Infrastructure Demand-side factors (10%), Payment Infrastructure Supply-side factors (15%), Payment Performance (45%), and Consumer Centricity (5%).
• Published semi-annually since March 2021, the index provides a comprehensive view, albeit with a lag of four months. This initiative underscores the RBI’s commitment to tracking and fostering the digital transformation of payment systems across the country.