#32 RBI’s Digital Payment Index

In 2021, RBI announced a Digital Payment index which gets published on a half yearly frequency.

The index had its base of 100 in March 2018 and has been growing at a 33%+ CAGR!

The index comprises 5 broad parameters that are the proxies of adoption of digital payments in the country. The parameter are:

1. Payment Enablers (25%): Covers parameters related to internet and mobile penetration, aadhar, bank accounts, participants and merchants

2. Payment Infrastructure - Demand side factors (10%): Includes payment instruments like debit cards, credit cards, prepaid instruments, FASTags, customers registered on mobile and internet banking apps

3. Payment Infrastructure - Supply side factors (15%): Parameters like bank branches, business correspondents, ATMs, PoS terminals, QR Codes and Intermediaries are captured here

4. Payment Performance (45%): Includes Digital Payment Systems - Volume and Value, Unique Users, Paper Clearing, Currency in Circulation, Cash Withdrawal

5. Consumer Centricity (5%): Awareness and Education, Declines, Complaints, Frauds, System Downtime

Source: RBI

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