RBI's Digital Payment Index
2022 JAN 18
Preliminary >
Economic Development > Miscellaneous > Digital India
Why in news?
- Digital payment transactions reported a 40% year on year jump as of September 2021, as per the RBI’s latest ‘Digital Payment Index’ that measures the extent of digitization of payments.
About RBI's Digital Payment Index:
- Reserve Bank of India has constructed a composite Digital Payments Index (DPI) to capture the extent of digitisation of payments across the country.
- 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 (weight 25%)
- (ii) Payment Infrastructure – Demand-side factors (10%)
- (iii) Payment Infrastructure – Supply-side factors (15%)
- (iv) Payment Performance (45%)
- (v) Consumer Centricity (5%)
- Each of these parameters have sub-parameters which, in turn, consist of various measurable indicators.
- 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 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.
PRACTICE QUESTION:
Digital payment index, that measures the extent of digitization of payments, is launched by
(a) NITI Aayog
(b) RBI
(c) National Payments Corporation of India
(d) SEBI
Answer