According to the RBI's Digital Payments Index (RBI-DPI), India's digital payments rose by 11.1% year-over-year until September 2024. As stated by the central bank, the index jumped to 465.33 in September 2024 from 445.5 in March 2024.
The increase in RBI-DPI is due to growth in payment infrastructure and payment performance across the country, RBI said.
RBI has been publishing a composite RBI-DPI since Jan 1, 2021 with Mar 2018 as the base to capture the extent of digitisation of payments in the country. The index is published bi-annually.
The index has five parameters to measure the deepening and penetration of digital payments over different periods.
These parameters are Payment Enablers (25%); Payment Infrastructure - Demand-side factors (10%); Payment Infrastructure - Supply-side factors (15%); Payment Performance (45%); and Consumer Centricity (5%).
RBI had mentioned in a report earlier this week that UPI has been the biggest contributor to digital payments growth in India due to its utility and simplicity.
According to the report, UPI share in India’s digital payments has grown from 34% in 2019 to 83% in 2024 with a CAGR of 74% over the last 5 years.
While RTGS, NEFT, IMPS, credit cards, debit cards etc. share in digital payments volume declined from 66% to 17% during the same period, the report said.
At a macro level, UPI transactions volume grew from 375 crore in 2018 to 17,221 crore in 2024 and total value of transactions grew from ₹5.86 lakh crore in 2018 to ₹246.83 lakh crore in 2024.
This is 89.3% and 86.5% CAGR in volume and value respectively, the report said.
