DIGITAL PAYMENTS INDEX

Subject : National Report

Context : Digital payment transactions surge in lockdown to surpass pre-Covid levels according to the report.

Concept :

About the Index

The RBI has constructed a composite Digital Payments Index (DPI) with March 2018 as the base period to capture the extent of digitization of payments across the country.
It was recommended by a committee headed by Nandan Nilekani on deepening digital payment.
RBI-DPI will be published on the central bank’s website on a semi-annual basis from March 2021 onwards with a lag of four months.
It comprises of five broad parameters that enable measurement of deepening and penetration of digital payments in the country over different time periods.
The parameters are:

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) and

Consumer centricity (5 per cent)

Each of these parameters has sub-parameters which, in turn, consist of various measurable indicators, RBI said.

Significance

Digital payments in India have been growing rapidly.
The DPI reflects accurately the penetration and deepening of various digital payment modes.