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Digital Payments Index

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August 04, 2025

Prelims: Current events of national and international importance| Economic & Social development

Why in News?

Recently, the Digital Payments Index revealed that Digital payments in India saw a 10.7% growth during Sept, 2024 to March, 2025.

  • Aim – It is designed to track the extent of digitalisation in payments across the country.
  • Introduced in – 2021.
  • Base year – March, 2018 as the base period.
  • DPI score - Set at 100 in 2018.
  • Released by - Reserve Bank of India (RBI).
  • Oversight – Biannually (twice a year).
  • Parameters 
    • Payment Enablers (25%),
    • Payment infrastructure Demand-side (10%) & supply-side (15%),
    • Payment performance (45%),
    • Consumer centricity (5%).
  • Key findings
    • The current level in March 2025 marks a more than fourfold increase in digital payment activity since 2018.
    • The latest increase is primarily driven by improvements in Payment Infrastructure Supply-side factors and Payment Performance includes
      • An expanded merchant acceptance network,
      • Wider adoption of QR code-based payments,
      • Robust growth in Unified Payments Interface (UPI) transactions, and
      • Improved availability of digital banking services nationwide.
    • It highlights a broader transformation in the country’s payments ecosystem, supported by government initiatives such as Digital India, growing smartphone penetration, and active fintech innovation.
  • Significance – It plays a crucial role in policy formulation and benchmarking progress.

Reference

DD NEWS| RBI – Digital Payment Index

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