Digital payments grew significantly at 13.24% in FY23, shows RBI index

Sakshi Education

In the fiscal year 2022-2023 (FY23), digital payments in India experienced remarkable growth, as indicated by the Reserve Bank of India (RBI) Digital Payments Index (RBI-DPI). The RBI-DPI, a comprehensive measure of payment digitization, displayed a substantial increase across all parameters during this period, driven by significant advancements in payment infrastructure and performance across the country. The index for March 2023 recorded a value of 395.58, marking a 13.24% growth compared to September 2022 (377.46), as announced on January 31, 2023.
The RBI-DPI encompasses five major parameters, each representing crucial aspects of the digitization of payments. These parameters are:
Payment Enablers: This parameter evaluates the factors that facilitate digital payment adoption, such as the availability of digital wallets, mobile banking services, and internet penetration.
Payment Infrastructure – Demand Side Factors: Focusing on the consumers’ end, this parameter examines the accessibility and ease of using digital payment platforms, including point-of-sale (POS) devices and payment gateways.
Payment Infrastructure – Supply Side Factors: This parameter assesses the robustness and efficiency of payment systems and infrastructure on the provider’s side, including banks and financial institutions.
Payment Performance: Evaluating the effectiveness of digital payment transactions, this parameter gauges factors like transaction success rates, transaction speed, and reliability.
Consumer Centricity: A crucial aspect of digital payments is user satisfaction. This parameter measures the overall experience and user-friendliness of digital payment platforms.