RBI Launches Digital Payment Index (DPI)

In News

The RBI constructed a composite Digital Payments Index (DPI).

In-Detail

  • The Reserve Bank of India (RBI) constructed a composite Digital Payments Index (DPI) to capture the digitization of payments across the country.
  • This is a significant development as there was a sharp pick in the digital transactions.
  • The RBI-DPI consists of five broad parameters.
  • This helps in the measurement of digital payments in the country over different time periods.
  • The parameters are
    • payment infrastructure- Demand side factors-weighs 10%,
    • payment infrastructure- supply side factors-weighs 15%,
    • payment enablers- weighs 25%,
    • Payment Performance- weighs 45% and
    • Consumer Centricity- weighs 5%.
  • Each parameter consists of sub-parameters and various measurable indicators.
  • The RBI-DPI is constructed with March 2018 as its base period.
  • In 2018 March, the DPI score is set at 100, for 2019 it was 154.47 and in 2020 it is 207.84.
  • RBI-DPI will be announced on the RBI’s website.
  • It will be published on a semi-annual basis from March 2021 with a period of four months.
  • The DPI will bring more transparency and efficiency in financial growth.

Digital Transactions

  • According to the RBI, in November 2020, both wholesale and retail transactions picked up.
  • In November 2020, in the retail segment, National Electronic Funds Transfer (NEFT) volumes grew 24.6%.
  • RBI stated that the growth value of NEFT transactions in November was 27.9% which was higher than that recorded in October, 20.1%.
  • The UPI transactions to the tune of Rs 3.9 lakh crore happened.
  • The IMPS transactions worth Rs 2.76 lakh crore happened.
  • The RGTS and NEFT transactions worth Rs 79.8 lakh crore and Rs. 22.18 lakh crore respectively were reported.
  • In November 2020, the UPI transactions increased to 2.2 billion transactions by maintaining momentum in volume and value terms.
  • Other digital transaction modes such as national electronic toll collection (NETC) showed growth and IMPS (Immediate Payment Services) showed stronger growth.
  • The Real-Time Gross Settlement (RTGS) transactions in the wholesale segment recorded an acceleration in the volume terms.
  • The RBI made RTGS available round the clock on all days from 12.30 AM December 14.
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