Reserve Bank of India-Digital Payments Index

The RBI constructed the Digital Payments Index to learn about digital payments in the country. The index is calculated based on five parameters namely Payment Enablers, Consumer centricity, payment infrastructure on the demand side, and payment infrastructure on the supply side. The index is calculated with 2018 as the base period. The 2023 DPI in India is 377.46. In 2022, it was 349.30 and in 2021 it was 304.06. With this, RBI concluded that Digital Payments in the country increased by 24.13%.

What contributed to the increase?

  • UPI – the Unified Payments Interface increased by 1.3%. UPI is a multi-bank account system. It allows money transfer 24/7, merchant payment, collections, donations, utility bill payments, QR code-based payments, etc.
  • Transactions made through the National Payments Corporation of India increased by 2.6%. NPCI processed more than 6,752 crores of transactions in the fiscal year 2023. In 2022, the platform made 7,404 crores of transactions.
  • The Fintech Adoption Rate in India increased to 87%. It was 64% at the global level.
  • India has the third largest digital transactions in the world after US and China
  • The transactions made through AEPS, that is, Aadhar Enabled Payments Service increased to Rs 26,000 crores of rupees per month on an average

About DPI

The following parameters are used in calculating the DPI:

  • The payment enablers are the Internet, Merchants, Aashar, Mobile, Bank Accounts
  • The Payment Infrastructure on the Demand side are debit cards, FASTags, Customers registered with mobile and internet banking, prepaid payment instruments, credit cards, and debit cards
  • Payment Infrastructure on Supply-side are bank branches, ATMs, QR codes, intermediaries, PoS terminals, business correspondents
  • Payment Performances are cash withdrawals, currency in circulation, paper clearing, unique users
  • Consumer Centricity are complaints, awareness, education, declines, system downtime




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