Digital payments surge 13.2% YoY at March-end 2023: RBI

Digital payments across the country grew 13.24% on a year-on-year basis as of March 2023, the RBI's Digital Payments Index for March 2023 shows. The RBI's Digital Payments Index (DPI) captures the extent of digitisation of payments across the country.

The index for March 2023 stands at 395.57 vs 377.46 for September 2022, shows the RBI data.

The Reserve Bank of India (RBI) has been publishing a composite Reserve Bank of India – Digital Payments Index (RBI-DPI) since January 1, 2021, with March 2018 as a base to capture the extent of digitisation of payments across the country. "The index for March 2023 stands at 395.57 as against 377.46 for September 2022, which was announced on January 31, 2023," the RBI statement says.

The central bank says the DPI index has "increased across all parameters", driven by significant growth in payment infrastructure and payment performance across the country over the period.

The RBI-DPI Index for March 2018, which was the base year, stood at 100, which increased to 152.47 in March 2019. In September 2019 and March 2020, the index surged to 173.49 and 207.84, respectively. Further, the index was recorded at 217.74 and 270.59 in September 2020 and March 2021, while it surged to 304.06 and 349.30 in September 2021 and March 2022, the data shows.

The Reserve Bank of India had constructed the composite digital payments index to capture the extent of digitisation of payments across the country.

The RBI-DPI comprises 5 broad parameters to measure the deepening and penetration of digital payments in the country over different time periods. These parameters are – (i) payment enablers (weight 25%), (ii) payment infrastructure – demand-side factors (10%), (iii) payment infrastructure – supply-side factors (15%), (iv) payment performance (45%) and (v) consumer centricity (5%). Each has sub-parameters that consist of various measurable indicators.

The RBI-DPI is published on the RBI’s website on a semi-annual basis from March 2021 onwards with a lag of four months.

RBI clarifies on Star series banknotes

Separately, the Reserve Bank has clarified the validity of banknotes with a 'Star (*)' symbol on the number panel, amid discussions on some social media platforms, saying the Star (*) symbol is inserted in the number panel of a banknote that is used as a replacement for defectively printed banknotes in a packet of 100 pieces of serially numbered banknotes.

"A banknote with a Star (*) symbol is identical to any other legal banknote, except that in the number panel, a Star (*) symbol is added between the prefix and the serial number. The Star (*) symbol is an identifier that is a replaced/reprinted banknote."