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Bounce in double digits year after year in digital payment: RBI-Obnews

News Update January 31, 2025 01:24 AM

According to the RBI index, which measures the adoption of online transactions, digital payments across India by September 2024 have recorded a double-point jump of 11.1 percent year-on (YOY). This information is given in the statement of the central bank. RBI's Digital Payment Index (RBI-DPI) for September 2024 has increased from 445.5 in March 2024 to 465.33.

The RBI stated that this increase in the RBI-DPI index has been due to an increase in payment infrastructure and payment performance throughout the country during this period. The RBI is publishing an overall RBI-DPI from January 1, 2021 to March 2018 to measure the limit of digitization of payment across the country. The index is published on a semi-annual basis.

The index consists of five parameters that are capable of measuring the intensity 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).

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. 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 digital payments like RTGS, NEFT, IMPS, Credit Card, Debit Card etc. declined from 66 percent to 17 percent during the same period, the report said in the report. 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.