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Digital Payments Index Soars by 11.1%, UPI Leads Growth: RBI Data

RBI Digital Payments Index jumps 11.1% in September 2024, with UPI driving growth. The RBI's efforts in payment infrastructure and performance boost digital transactions across India.

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Digital payments in India saw a significant rise of 11.1% year-on-year (YoY) as of September 2024, as per the latest data from the Reserve Bank of India's (RBI) Digital Payments Index (RBI-DPI). This growth reflects the country's increasing adoption of online transactions and the role of the RBI's efforts in boosting digital payment infrastructure.

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RBI-DPI Index Reaches New Heights

As of September 2024, the RBI-DPI stood at 465.33, up from 445.5 in March 2024. The index, introduced by the RBI on January 1, 2021, measures the digitisation of payments in India. The increase in the index is attributed to improvements in both payment infrastructure and performance. The index is published twice a year and reflects the progress of digital payments based on several key factors.

Key Parameters Driving Growth

The RBI-DPI is calculated based on five parameters: Payment Enablers (25%), Payment Infrastructure (Demand-side: 10%, Supply-side: 15%), Payment Performance (45%), and Consumer Centricity (5%). These factors contribute to assessing the penetration and deepening of digital payments across the country.

UPI’s Role in Expanding Digital Payments

The Unified Payments Interface (UPI) has been the most significant driver behind this growth. From 2019 to 2024, UPI’s share in India's digital payments skyrocketed from 34% to an impressive 83%. The compound annual growth rate (CAGR) of UPI transactions over the last five years stands at an extraordinary 74%. Meanwhile, the share of other payment systems like RTGS, NEFT, and credit/debit cards fell from 66% to 17%.

In terms of transaction volumes, UPI has seen remarkable growth, with the number of transactions rising from 375 crore in 2018 to 17,221 crore in 2024. The value of these transactions grew from ₹5.86 lakh crore in 2018 to ₹246.83 lakh crore in 2024, reflecting a robust CAGR of 89.3% in volume and 86.5% in value.

Digital Payments RBI
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