RBI Index Reveals Remarkable 13.24% Growth in Digital Payments during FY23.

digital payments

In the financial year 2022-2023, digital payments experienced significant growth in India, as showcased by the Reserve Bank of India’s (RBI) index for digitization of payments. The RBI-Digital Payments Index (RBI-DPI) highlighted a remarkable increase of 13.24 per cent, with the index for March 2023 soaring to 395.58 from the previous figure of 377.46 in September 2022.

digital payments

The surge in the RBI-DPI index was attributed to substantial advancements in payment infrastructure and overall payment performance across the nation during this period. As reported, the RBI-DPI index witnessed growth across all parameters, reflecting the significant progress made in embracing digital payment methods.

The RBI introduced the DPI as part of its sixth bi-monthly monetary policy statement for 2019-2020, with the primary goal of assessing the extent of digital payment adoption across the country. This comprehensive index consists of five main parameters, which include payment enablers, payment infrastructure (demand-side factors), payment infrastructure (supply-side factors), payment performance, and consumer centricity. Each of these parameters includes various measurable indicators to provide a comprehensive view of the digital payment landscape in India.

digital payments
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Additionally, a recent report by PwC India brings further optimism, predicting that Unified Payments Interface (UPI) transactions are poised to reach an impressive milestone of 1 billion transactions per day by the year 2026-2027. The rise of UPI has played a vital role in driving the growth of digital payments in India, accounting for approximately 75 per cent of the total transaction volume in the retail segment during the period of 2022-2023. This shows the increasing popularity and convenience of digital payment methods in the country, signaling a promising future for the digital economy.

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