Digital Payments Index soon

Chennai: The RBI will publish a composite Digital Payments Index to capture the extent of digitisation. It also mooted the idea of having a self-regulatory body for the segment.

Considering that digital payments in India have been growing rapidly, the bank shall construct and periodically publish a composite Digital Payments Index (DPI) to capture the extent of digitisation of payments effectively, the central bank said.

The DPI would be based on multiple parameters and shall reflect accurately the penetration and deepening of various digital payment modes. The index will be made available from July 2020.

The RBI has also suggested a self-regulatory organisation for the segment. “With substantial growth in digital payments and maturity gained by entities in the payment ecosystem, it is desirable to have a Self-Regulatory Organisa-tion (SRO) for orderly operations of the entities in the payment system,” it said.

The RBI will put in place a framework for setting up an SRO by April 2020, which will serve as a two-way communication channel bet-ween the players and the regulator/supervisor.