Digital Payments Index

The Reserve Bank of India (RBI) has recently announced an increase in the Digital Payments Index (RBI-DPI), which reached 493.22 in March 2025, up from 465.33 in September 2024. This reflects a growing adoption of digital payment methods in India.

Insights on RBI-Digital Payments Index (RBI-DPI):

1. Purpose: The RBI-DPI is designed to measure the extent to which digital payments have been integrated into India's financial ecosystem. The index tracks the digitization of payments across the country and is the first of its kind.

   Launch: The RBI launched the index in January 2021 to accurately gauge the spread and growth of digital payments.

   Base Year: The base period for the index is March 2018, with a score of 100 assigned to that year.

   Five Key Parameters:
   The RBI-DPI uses five broad parameters to assess the progress of digital payments:

   • Payment Enablers (25% weight): This measures the infrastructure supporting digital payments.

   • Demand-side and Supply-side Payment Infrastructure (10% each): These factors evaluate the accessibility and availability of digital payment systems to both consumers and service providers.

   • Payment Performance (45%): The largest weightage, focusing on the overall efficiency and reliability of digital payment systems.

   • Consumer Centricity (5%): Measures how digital payments cater to consumer needs and preferences.

   Each of these parameters is subdivided into sub-parameters, with measurable indicators that help evaluate the depth of digital payments penetration.

The rise in the RBI-DPI score indicates a significant shift towards digital payment methods in India. The index provides a quantitative look at how digital payments are expanding, offering valuable insights for policymakers, businesses, and consumers. It also showcases India's progress in its goal of fostering a more cashless, tech-driven economy.