India is rapidly advancing its digital payments revolution. On Monday, the Reserve Bank of India (RBI) announced that its Digital Payments Index (RBI-DPI) rose to 493.22 in March 2025, an increase from 465.33 in September 2024. The RBI attributes this latest growth primarily to enhancements in Payment Infrastructure – Supply-side factors – and Payment Performance. Key contributors to this progress include a broader merchant acceptance network, greater adoption of QR code-based payments, significant growth in Unified Payments Interface (UPI) transactions, and improved access to digital banking services across the nation. This upward trend signifies a wider transformation within the country’s payments ecosystem, bolstered by government initiatives like Digital India, increasing smartphone usage, and dynamic fintech innovation. The RBI-DPI has demonstrated consistent growth since its establishment. In March 2019, it was recorded at 153.47, climbing to 207.84 by March 2020. By March 2022, the index had escalated to 349.30, representing a more than threefold increase from the base year. The index continued its upward trajectory, reaching 445.50 in March 2024 and 465.33 by September 2024. The current figure of 493.22 in March 2025 indicates a more than fourfold increase in digital payment activity since 2018. As India approaches the status of a digital economy, the RBI-DPI is anticipated to be instrumental in shaping policy and measuring progress. This recent surge also serves as an encouraging indicator amidst global apprehensions regarding digital inequality and access to financial services.
