RBI launches Digital payments index to track transactions

News: Reserve Bank of India(RBI) has launched a composite Digital Payments Index(DPI).

Facts:

• Objective: To capture the extent of digitisation of payments across the country given the sharp pick-up in digital transactions seen in the recent past.
• Parameters: The index comprises five broad parameters with varying weights to measure the penetration of digital payments.The five key parameters include:
  • Payment enablers (25%).
  • Payment infrastructure—demand-side factors (10%).
  • Payment infrastructure—supply-side factors (15%).
  • Payment performance (45%).
  • Consumer centricity (5%).
• These factors include multiple sub-parameters that would help the regulator conduct its study into the digital payment ecosystem.
• Duration of Releasing Index: The index shall be published on RBI’s website on a semi-annual basis from March 2021 onwards with a lag of 4 months.
• Base Year: The index has been constructed with March 2018 as the base period.At a base of 100 for March 2018, the RBI has measured that the index rose to 153.47 and 207.84 in 2019 and 2020 respectively.

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