Digital payment index up 30% in FY21
Consumers shying away from physical mode payments as ongoing pandemic worries and enhanced infrastructure, says banking regulator
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The Covid-19 pandemic and restrictions associated with it has pushed up digital transactions in the country. An indicator to faster adoption of online payment medium is the Reserve Bank of India's Digital Payment Index. After moving at moderate pace over the years, the index has jumped sharply 30 per cent between March 2020 and March 2021.
The pandemic is one of the reasons, why people are increasingly preferring digital payment mechanism over physical mode. But improvement in the digital payment infrastructure has also pushed up this adoption.
The RBI had earlier announced construction of a composite Reserve Bank of India - Digital Payments Index (RBI-DPI) with March 2018 as base to capture the extent of digitisation of payments across the country.
The index for March 2021 stands at 270.59 as against 207.84 for March 2020, announced while launching the index on January 1, 2021.
The RBI-DPI index has demonstrated significant growth in the index representing the rapid adoption and deepening of digital payments across the country in recent years, the apex bank said in a statement.
Starting from March 2018, the index stood at 153.47 in March 2019, 173.49 in September 2019. This improved to 207.84 in March 2020, 217.74 in September 2020 and further increased to 270.59 in March 2021.
