New Delhi
According to the Index of the Reserve Bank of India (RBI), by September 2024, digital payment across India registered a double-point increase of 11.1 percent year after year. This information was given in the statement of the central bank.
RBI stated the reason for increase in digital payment index
It is known that RBI’s Digital Payment Index (RBI-DPI) for September 2024 rose from 445.5 in March 2024 to 465.33. The RBI said that the increase in the Digital Payment Index of RBI was due to increase in payment infrastructure and payment performance across the country during this period.
Index is published on half-yearly basis
The RBI is publishing an overall RBI-digital payment index to measure the limit of digitization of payment across the country from January 1, 2021 to March 2018. The index is published on a semi-annual basis.
The index consists of five parameters
The index includes five parameters that enable the intensive and penetration of digital payments in the country in different periods. These parameters are payment competent (load 25 percent); Payment infrastructure-demand-party factor (10 percent); Payment infrastructure-supply-side factor (15 percent); Payment performance (45 percent); And consumer focus (5 percent).
UPI, the most important contributor in the growth of digital payments in India
The RBI had stated in a report earlier this week that UPI has been the most important contributor in the growth of digital payments in India due to its usefulness and ease of use.
UPI’s stake increased from 34 percent in 2019 to 83 percent in 2024
According to the report, Unified Payments Interface (UPI) stake in the country’s digital payment has increased from 34 percent in 2019 to 83 percent in 2024, with a remarkable CAGR (cumulative average growth rate) of 74 percent in the last five years. In contrast, the share of other payment systems like RTGS, NEFT, IMPS, Credit Card, Debit Card etc. declined from 66 percent to 17 percent during the same period.
Quantity of UPI transactions
At a large level, the amount of UPI transactions increased from 375 crores to 17,221 crore in 2018, while the total value of the transaction increased from ₹ 5.86 lakh crore in 2018 to ₹ 246.83 lakh crore in 2024. The report states that it is a CAGR of 89.3 percent and 86.5 percent respectively in terms of quantity and value.
