Syllabus Section:  Economy

WHY IN NEWS?

The Reserve Bank of India (RBI) has constructed a composite Digital Payments Index (DPI) to capture the extent of digitization of payments across the country.

ABOUT RBI- DIGITAL PAYMENTS INDEX

• The RBI-DPI comprises of 5 broad parameters that enable measurement of deepening and penetration of digital payments in the country over different time periods.

• These parameters are – (i) Payment Enablers (weight 25%), (ii) Payment Infrastructure – Demand-side factors (10%), (iii) Payment Infrastructure – Supply-side factors (15%), (iv) Payment Performance (45%) and (v) Consumer Centricity (5%)

• Each of these parameters have sub-parameters which, in turn, consist of various measurable indicators.

• The index has been constructed with March 2018 as the base period, with a DPI score for of 100. The DPI for March 2019 and March 2020 work out to 153.47 and 207.84, respectively, indicating appreciable growth.

• RBI-DPI shall be published on RBI’s website on a semi-annual basis from March 2021 onwards with a lag of four months.

 

Source: The Financial Express