The Reserve Bank of India kicked off the new year with the launch of its new Digital Payments Index (DPI) to help monitor and report on the penetration of digital payments in that country.

The index is a composite of five parameters the bank said it will use to measure digital payment growth over time: payment enablers (25%); payment infrastructure – demand-side factors (10%); payment infrastructure – supply-side factors (15%); payment performance (45%) and consumer centricity (5%).

The bank has also listed sub-parameters for each of the parameters. These include channels like the internet and mobile, as well as participants and merchants for the payment enabler category and factors like debit and credit cards and prepaid payment instruments for the demand side of payment infrastructure, for example.

The bank said that it would use March 2018 as its base, setting an index score for that month at 100. The index scores for March 2019 and March 2020 are 153.47 and 207.84 respectively, it said, indicating considerable growth over the past two years. Going forward, the bank plans to publish the index semiannually.

The bank had announced plans to develop the index last February. The index is one of a number of bank initiatives geared to supporting the adoption of digital payments there.