Consider the following statements regarding the RBI's Digital Payments Index (RBI-DPI):

I. The Reserve Bank of India (RBI) has been publishing the RBI-DPI with 2021 as the base year to capture the extent of digitisation of payments across the country.

II. The RBI-DPI consists of 6 broad parameters that have in turn sub-parameters.

III. There has been a constant increase in the RBI-DPI since the time of its inception.

IV. Consumer Centricity is one of the parameters in the RBI-DPI.

Which of the above statement/statements is/are valid?

Key Points

• The Reserve Bank of India (RBI) has been publishing the RBI-DPI with 2018 as the base year to capture the extent of digitisation of payments across the country.
• The RBI-DPI consists of 5 broad parameters that have in turn sub-parameters.
• There has been a constant increase in the RBI-DPI since the time of its inception.
• Consumer Centricity is one of the parameters in the RBI-DPI.

Additional Information

• RBI's Digital Payments Index (RBI-DPI)
  • The RBI introduced the Digital Payments Index (DPI) to measure the extent of digitization of payments across the country.
  • The base year for the index is 2018, and it comprises 5 broad parameters: Payment Enablers, Payment Infrastructure – Demand-side factors, Payment Infrastructure – Supply-side factors, Payment Performance, and Consumer Centricity.
  • The index is published semi-annually and provides insights into the level of digital payment adoption in India.
  • Each parameter has a specific weight within the index, reflecting its importance in the overall digital payments ecosystem.
• Digital Payments
  • Digital payments refer to transactions carried out electronically, often involving the use of the internet, mobile networks, and digital platforms.
  • Examples include online banking, mobile payments, digital wallets, and UPI (Unified Payments Interface) transactions.
  • Digital payments offer convenience, speed, and enhanced security compared to traditional cash-based transactions.
  • The adoption of digital payments has been growing rapidly in India, driven by government initiatives, technological advancements, and increasing internet penetration.
• Consumer Centricity
  • Consumer Centricity refers to the focus on providing a positive experience and ensuring the satisfaction of consumers in the digital payments ecosystem.
  • This parameter includes aspects such as customer support, grievance redressal mechanisms, and user-friendly interfaces.
  • Ensuring a high level of consumer satisfaction is crucial for promoting the adoption and usage of digital payments.