ADVERTISEMENT

Digital Payments Index introduced by RBI, a scoring system to review digitization of payments effectively
D

Reserve Bank of India introduced a scoring system DPI (Digital payments Index) to review the digitization of payments effectively. The scoring system allows both consumers and stakeholders to gauge the local area development.

The Reserve Bank of India will issue periodic scores that will assess the performance of the digital payments industry, focusing on critical parameters as Rural Penetration and innovation in pre-existing modes and channels. The index would be made available in the public domain from July 2020.

 

The current position of India in Digital Paments

digital payments

As per the current statistics, Digital payments in India is increasing wherein the Reserve Bank will construct and publish a composite DPI to capture the extent of digitization of payments.

The scoring system DPI would be based on several parameters and would reflect the deepening and penetration of various digital payment modes. The Government is aggressively trying to drive the financial inclusion agenda, periodically track digital payments.

RBI also measures the sector progression and checks whether aligned to their target Goals.

The new scoring system will allow the stakeholders and consumers to analyze the need for local area development infrastructure, demographics, and acceptance related growth perspective in reference to broader national and global standards in the digital payments.

RBI also turns to publish guidelines for setting up Self-Regulatory Organisation (SRO) in April 2020, enhancing the communication mechanism between stakeholders such as Service providers, Banks, regulatory and supervisory bodies such as (NPCI) National Payments Corporation of India (NPCI) and Reserve Bank of India (RBI).

 

What is SRO?

digital payments

SRO (Self Regulatory Organization) is a non-governmental organization with the power to create and enforce standalone industry and professional regulations.

Payments Council of India is currently the most significant industry body that fulfills in India’s Digital Payment Industry.

It is desirable to have SRO for orderly operations of entities in the payment system, considering the substantial growth in digital payments and maturity gained by bodies in the payment system.

 

How will Digital Payments Index be beneficial?

DPI will be beneficial to understand the current usage of digital channels in urban and rural areas. Banks and all digital payment companies will get to know about the channels which are more popular among consumers.

The mapping of digital payments will help the end consumers know and evolve in the space.

The initiative will enable companies at an individual level to gauge the ground level effectiveness of various programs already running in the country. The launch of the index will assist the financial payments ecosystem in identifying growth areas and improve the widespread permeation of all cashless payments.

Reserve Bank of India estimates the total digital transactions in terms of the volume recorded a growth of 58.8% during 2018-19, which is on top of growth of 50.4% during 2017-18.

As per RBI, the digital transactions grew by 19.5 percent during 2018-19, compared to 22.2 percent during 2017-18.

+ posts

An enthusiastic content writer with zeal and impetus to work towards excellence

Disclaimer: The views, thoughts, and opinions expressed in the article have been curated for our audience and does not warrant a 100% accuracy. All the information mentioned in the article is subject to change according to the changing viewpoints. Feel free to reach us at [email protected] for any change or copyright issues.

Note: If you buy something via a link on this page, we might earn a small commission on it.

Deepish Mahajan
Deepish Mahajan
An enthusiastic content writer with zeal and impetus to work towards excellence

Leave A Reply

Please enter your comment!
Please enter your name here

related stories

The Indian public sector is undergoing a new shift. Since time, many of these sectors have worked for the government and made the extra dime public.

How the Privatisation move might put the Modi government afront in public benefit

0
A crisis on an unprecedented scale is facing the Indian banking sector. When more facts are brought to light, the problem becomes peculiar. You...
Disruptors have been challenging big logistics players for years and the shift towards ecommerce has created a fertile ground for logistics startups.

Transformation of Indian Logistics Tech Ecosystem

0
The logistics industry is the backbone of every economy. The growth of the Indian ecommerce sector enabled startups dealing in logistics to expand their...
India's healthcare sector is booming, thus giving many opportunities to establish a unified system that contributes to better health.

India’s healthcare startup ecosystem is booming, as Government prioritises on better systems

0
India is a country that is democratic and It is the government's responsibility to provide primary health care for individuals. India is a large...
Forty-four such one-horned digital entities have been produced by the ecosystem that has cumulatively generated around 106 billion dollars in value so far.

A flourishing sector; How India’s billion dollar unicorn sector is putting India afront on...

0
Startups can generate impactful solutions through innovation and scalable technology and act as vehicles for socio-economic development and transformation. Over the last two decades,...
Indian officials have deemed it essential to have guidelines for influencers advertising to protect the consumers' interest.

New Guidelines for Indian Social Media Influencers

0
The ASCI, Advertising Standards Council of India (1), India's self-regulatory voluntary organization for advertising, rolled out a set of draft guidelines for influencers promotion...
explained-why-india-is-approving-china-fdi-proposals

Explained: Why India is Approving China FDI Proposals

0
In April, the Indian government had modified the rules to let FDI, Foreign Direct Investment, from neighboring countries only with its preceding consent, even...
The year 2020 gave a significant shift to the retail sector. Consumer behavior and shopping patterns are no longer the same in the new normal.

Consumer Behaviour and Trends Dominating Retail Industry in 2021

0
On January 1, 2020, as we turned our calendars to welcome the New Year, we never expected the turn of events that followed. Businesses...
India's unemployment rate keeps rising, however, a Gig economy aims to create leverage amongst the unemployed with gigs that could fasten its process.

Gig Economy: How this could be India’s solution to the unemployment crisis

0
A major challenge worldwide is creating jobs for young people, further exacerbated by the global financial crisis that has hit this group hard. Due...
ADVERTISEMENT