The RBI-DPI index was set as 100 in March 2018 (the base duration)The Reserve Bank of India's digital payments index (DPI) in March 2021 increased to 270.59, compared to 207.84 for March 2020, suggesting a robust development in digital deals throughout the COVID-hit year in the country.
The reserve bank announced the construction of the composite Reserve Bank of India (RBI) -- Digital Payments Index (RBI-DPI) with March 2018 as the base period to evaluate the degree of digitization of payments in the country.The index was set as 100 in March 2018 (the base duration) and it stood at 153.47 in March 2019.
While in September 2020, the index stood at 217.74.
In a declaration on Wednesday, July 28, RBI stated that the RBI-DPI index has actually demonstrated significant development in the index representing the fast adoption and deepening of digital payments across the nation in current years.The index - RBI-DPI makes up 5 broad parameters which permit the measurement of the extent and penetration of digital payments in the country across various time periods.
The 5 specifications are as follows: Payment Enablers (weight 25 percent)Payment Facilities-- Demand-side factors (10 per cent)Payment Facilities-- Supply-side factors (15 per cent)Payment Performance (45 percent)Customer Centricity (five per cent)These parameters have sub-parameters that include quantifiable signs for the penetration of digitisation.
Payment enablers such as bank accounts, Aadhaar, mobile, web, to name a few make up 25 per cent of the overall index.The digital payments index is likewise a measure of determining the development of the nation's cashless economy for the federal government.
Previously this year, the RBI mentioned that the DPI for March 2019 and March 2020 exercise to 153.47 and 207.84 respectively, suggesting an appreciable growth.
Going forward, the RBI-DPI will be released on the RBI's website on a semi-annual basis from March 2021 onwards with a lag of four months.