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Digital Payments Index

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Reserve Bank of India has constructed a composite Digital Payment Index (DPI) to capture the extent of digitisation in India. The RBI-DPI comprises of 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, (ii) Payment Infrastructure – Demand-side factors, (iii) Payment Infrastructure – Supply-side factors , (iv) Payment Performance and (v) Consumer Centricity.

Out of all the indicators, payment performance has the highest weight of 45%, followed by Payment Enablers with a weight of 25%, Payment Infrastructure- supply side and demand side with a weight of 15% and 10% respectively. Lastly, the indicator Consumer Centricity has a weight of 5%. This is an important indicator to track the development in all aspects of digital payments index.

Each indicator has various sub-parameters as listed in table below:

Payment Enablers Payment Infrastructure- Demand-side factors Payment Infrastructure- Supply-side factors Payment Performance Consumer Centricity
(25%) (10%) (15%) (45%) (5%)
Internet Debit cards Bank Branches Digital Payments Systems-Volume Awareness and education
Mobile Credit cards Business Correspondents Digital Payments System-Value Declines
Aadhar Prepaid Payment Instruments ATMs Unique Users Complaints
Bank Accounts Customers registered-Mobile and Internet Banking PoS terminals Paper Clearing Frauds
Particpants FASTag QR Codes Currency in Circulation System Downtime
Merhants   Intermediaries Cash withdrawals  

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 Digital Payments Index is published on a semi-annual basis with a lag of 4 months. The value of index increased 2.7 times a span of 3 years, from 100 in March 2018 to 270.59 in March 2021. The index has demonstrated significant growth in the index representing the rapid adoption and deepening of digital payments across the country in recent years.

Period DPI Index
March 2018 (Base) 100
March 2019 153.47
September 2019 173.49
March 2020 207.84
September 2020 217.74
March 2021 270.59

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