Digital payment logs a growth of 40 % at September 2021

Tags: Economics/Business

Digital Payment across the country experienced a growth rate of 40% in a year through September 2021. This data was brought out by the RBI Digital Payment Index (RBI-DPI) that measures the adoption of digital payment in India.

RBI-PDI Index 

 RBI in its sixth Bi- monthly Monetary Policy Statement  2019-20  dated 6 February 2020 announced a composite Digital Payments Index (DPI) to capture the extent of digitisation of payments across the country

Base Period of the Index

The RBI-DPI has been constructed with March 2018 as the base period, i.e. DPI score for March 2018 is set at 100.

The index for September 2021 stands at 304.06 as against 270.59 for March 2021.

Composition of the RBI-PDI Index

The RBI-DPI comprises 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%),

(ii) Payment Infrastructure – Demand-side factors (10%), 

(iii) Payment Infrastructure – Supply-side factors (15%),

(iv) Payment Performance (45%) and 

(v) Consumer Centricity (5%).

Frequency of its publication 

The index is published by RBI every six months from March 2021 onwards with a lag of four months.