Synopsis
According to the Reserve Bank of India's latest index, digital payments in India have surged by 11.1% year-on-year as of September 2024. The growth is driven by advancements in payment infrastructure and the increasing popularity of UPI transactions.Key Takeaways
- Digital payments rose by 11.1% in YoY growth.
- RBI-DPI index reached 465.33.
- UPI transactions surged to 83% of total digital payments.
- Five-year CAGR for UPI volume is 89.3%.
- RBI-DPI measures five essential parameters.
Mumbai, Jan 30 (NationPress) Digital transactions throughout India have experienced a substantial year-on-year (YoY) increase of 11.1 percent as of September 2024, as per the index released by the Reserve Bank of India (RBI) that assesses the uptake of online payment methods, according to an official statement from the Central Bank.
The RBI's Digital Payments Index (RBI-DPI) for September 2024 has reached 465.33, an increase from 445.5 in March 2024.
This growth in the RBI-DPI index has been attributed to the enhancement of payment infrastructure and overall performance throughout the nation during this timeframe, the RBI noted.
Since January 1, 2021, the RBI has been releasing a composite RBI-DPI, using March 2018 as the base year to reflect the level of payment digitization in the country. This index is made public on a semi-annual basis.
The index consists of five key parameters that allow for the evaluation of the evolution and reach of digital payments in the nation over varying periods.
These parameters include Payment Enablers (25 percent weightage); Demand-side Payment Infrastructure (10 percent); Supply-side Payment Infrastructure (15 percent); Payment Performance (45 percent); and Consumer Centricity (5 percent).
Earlier this week, the RBI emphasized in a report that UPI has been a major driving force behind the expansion of digital payments in India due to its practicality and user-friendliness.
The report indicated that the proportion of Unified Payments Interface (UPI) in the country’s digital payments surged from 34 percent in 2019 to an extraordinary 83 percent in 2024, showcasing a remarkable CAGR (cumulative average growth rate) of 74 percent over the past five years.
Conversely, the share of alternate payment systems, such as RTGS, NEFT, IMPS, credit cards, and debit cards, has diminished from 66 percent to 17 percent during the same timeframe, according to the report.
At a broader level, the volume of UPI transactions escalated from 375 crore in 2018 to 17,221 crore in 2024, while the overall transaction value skyrocketed from ₹5.86 lakh crore in 2018 to ₹246.83 lakh crore in 2024.
This translates to a five-year CAGR of 89.3 percent in volume and 86.5 percent in value, the report detailed.
