The realm of digital payments witnessed an awe-inspiring surge in the fiscal year 2023, with an astounding growth rate of 13.24%. This remarkable revelation comes straight from the esteemed Reserve Bank of India (RBI), which meticulously tracks the digitization of payments through its comprehensive "Reserve Bank of India – Digital Payments Index" (RBI-DPI).
March 2023 saw the index soar to an impressive 395.58, leaving behind its September 2022 counterpart at 377.46, a clear testament to the exponential progress made in just a matter of months.
In a recent statement, the RBI expressed its elation over the tremendous growth, attributing it to the rapid expansion of payment infrastructure and enhanced payment performance across the nation. This all-encompassing surge has been nothing short of extraordinary.
Rewinding back to March 2018, the base index stood at a humble 100, and since then, it has been a relentless upward trajectory, charting new heights in the digital landscape.
Reflecting on the not-so-distant past, the RBI-DPI figures for March 2022 showcased a robust 349.30, which further climbed from 270.59 in March 2021 and 304.06 in September 2021.
It's worth mentioning that the conceptualization of RBI-DPI traces back to the sixth bi-monthly monetary policy statement for 2019-20. Its core purpose was to gauge the extent of digitization of payments sweeping across the nation. The index, designed meticulously by the RBI, encompasses five comprehensive parameters, namely payment enablers, payment infrastructure (demand side factors), payment infrastructure (supply side factors), payment performance, and consumer centricity, each comprising a multitude of measurable indicators.
Keeping the industry stakeholders informed, the RBI-DPI is published on a semi-annual basis, with a slight time lag of four months, providing a comprehensive overview of the digital payment landscape.
In tandem with this awe-inspiring growth, a recent report by PwC India predicts a meteoric rise in Unified Payments Interface (UPI) transactions. By 2026-27, UPI transactions are projected to reach an astounding 1 billion transactions per day. The monumental role played by UPI in driving India's digital payment revolution cannot be overstated, accounting for a staggering 75% of the total transaction volume in the retail segment during the period of 2022-23.
This revolutionary journey of digital payments continues to redefine the financial landscape of the nation, promising an exciting future of unparalleled growth and innovation.
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