Digital Payments See Double-Digit Growth Year-on-Year

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Mumbai, Jan 30 (IANS) – Digital payments in India have seen a substantial year-on-year increase of 11.1% as of September 2024, according to the Reserve Bank of India’s (RBI) index that tracks the adoption of online transactions.

The RBI Digital Payments Index (RBI-DPI) for September 2024 has reached 465.33, up from 445.5 in March 2024, reflecting a significant leap in the country’s digital payment infrastructure and performance.

The index, which the RBI has been publishing semi-annually since January 2021 with a base year of March 2018, measures the extent of digitisation in the Indian payment sector. It includes five key parameters: Payment Enablers (25%), Payment Infrastructure – Demand-side factors (10%), Payment Infrastructure – Supply-side factors (15%), Payment Performance (45%), and Consumer Centricity (5%).

The RBI credited the growth to enhanced payment infrastructure and better overall payment performance across the nation.

A major contributor to the surge in digital payments has been the Unified Payments Interface (UPI), which has witnessed a dramatic rise in adoption. According to the RBI’s report, UPI’s share of the country’s digital payments has skyrocketed from 34% in 2019 to 83% in 2024, with an impressive cumulative average growth rate (CAGR) of 74% over the past five years.

Meanwhile, the share of traditional payment systems, such as RTGS, NEFT, IMPS, and credit/debit cards, has sharply declined from 66% in 2019 to 17% in 2024.

On a macro scale, the volume of UPI transactions has surged from 375 crore in 2018 to 17,221 crore in 2024, while the total value of transactions has grown from ₹5.86 lakh crore to ₹246.83 lakh crore over the same period. This represents a five-year CAGR of 89.3% in transaction volume and 86.5% in transaction value.

The RBI’s report highlights the significant role of UPI in the country’s push toward digital financial inclusion and ease of payment transactions.


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