RBI's digital payment index India 2018-2022
Sub-parameters of RBI’s digital payment indexThe index measures the penetration of digital payments in India based on five parameters: Payment enablers (25 percent), payment infrastructure-demand-side factors (10 percent), payment infrastructure-supply-side factors (15 percent), and payment performance (45 percent). The latter includes value and volume of digital payments, currency in circulation, and cash withdrawals. And lastly consumer centricity (five percent) entailing awareness and education, number of declines, frauds, and system downtime.
RBI and evolving digital payments ecosystemThe growth of digital payment infrastructure in the country was both a consequence and a need of the hour following demonetization. RBI and the National Payments Corporation of India (NPCI) fostered a varied digital payment ecosystem in the country catering to the large and diverse population. Consequently, the country’s digital payment landscape multiplied manifold times in the last years.
Noteworthy is the expansion of the United Payment Interface which witnessed a transaction volume of 45 billion in 2022. RBI intends to explore the future of digital money in the form of central bank digital currency (CBDC). Three new digital payment initiatives namely RuPay Credit card on UPI, UPI Lite, and Bharat BillPay Cross-Border Bill Payments were also recently launched by RBI at Global Fintech Fest 2022.