Digital Payments Index Surges
India’s digital payments ecosystem has witnessed leap in 2025. The Reserve Bank of India (RBI) announced that its Digital Payments Index (RBI-DPI) reached 493.22 in March 2025. This marks a strong rise from 465.33 in September 2024. The RBI-DPI tracks the growth and extent of digital payment adoption across the country. It marks the rapid digital transformation in both urban and rural India.
What is Digital Payments Index?
- The RBI-DPI was launched in January 2021 with March 2018 as the base period, set at 100.
- It measures the digitisation of payments using five broad parameters:
- payment enablers
- demand-side and supply-side infrastructure
- payment performance
- consumer centricity.
- Each parameter is weighted differently to reflect its importance.
- The index provides a composite score indicating the depth and reach of digital payments.
Parameter Weightage
- Payment Enablers (25%) focus on factors facilitating digital payments.
- Demand-side Infrastructure (10%) covers user access and readiness.
- Supply-side Infrastructure (10%) measures availability of payment services.
- Payment Performance (45%) evaluates transaction volumes and values.
- Consumer Centricity (5%) assesses user experience and security.
Each parameter includes sub-indicators that provide detailed vital information about the payments ecosystem.
Growth Trajectory Since Inception
Since 2018, the index has shown a steady upward trend. Starting at 100 in March 2018, it rose to 153.47 by March 2019. By March 2020, it reached 207.84. The surge accelerated with the index hitting 349.30 in March 2022. It further climbed to 445.50 in March 2024 and 465.33 by September 2024. The current figure of 493.22 in March 2025 represents more than a fourfold increase in digital payment activity over seven years.
Key Drivers of the Index Increase
Several factors have driven this growth. On the supply side, the expansion of payment infrastructure is crucial. More merchants now accept digital payments, and QR code-based transactions have become widespread. The Unified Payments Interface (UPI) continues to grow robustly. Improved availability of digital banking services nationwide also supports this rise. These developments reflect strong fintech innovation and government initiatives like Digital India.
Significance for India’s Digital Economy
The rising RBI-DPI score signals India’s progress towards becoming a fully digital economy. It helps policymakers benchmark progress and identify areas needing improvement. The index also addresses concerns related to digital inequality by denoting gaps in access. As smartphone penetration increases and fintech solutions evolve, digital payments are becoming more inclusive. This trend supports financial inclusion and economic growth.
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