In India, who introduced Digital Payment Index to track India's cashless economy?

Correct option is D

The Reserve Bank of India (RBI) introduced the Digital Payment Index (DPI) in January 2021 to measure the adoption and growth of digital payments in the country. The index evaluates factors like infrastructure, payment performance, consumer adoption, and innovation to assess India's transition to a cashless economy.

Information Booster:

1. The Digital Payment Index (DPI) is released semi-annually, with March 2018 serving as the base year (DPI = 100).
2. The DPI includes five major parameters: Payment Enablers, Payment Infrastructure–Demand Side, Payment Infrastructure–Supply Side, Payment Performance, and Consumer Centricity.
3. The index helps policymakers analyze the progress of digital payment systems.
4. It is part of RBI's efforts to promote financial inclusion and reduce dependency on cash transactions.
5. As of recent updates, the DPI has shown steady growth, reflecting the increasing popularity of Unified Payments Interface (UPI) and other digital payment platforms.
6. UPI, Aadhaar-enabled payments, and digital wallets are key contributors to the rise of the cashless economy.

Additional Knowledge:

• NPCI (Option a): National Payments Corporation of India operates UPI and IMPS but does not publish the DPI.
• SBI (Option b): State Bank of India is a leading commercial bank, not the regulatory authority for digital payments.
• Ministry of Finance (Option c): Oversees fiscal policies but the DPI is RBI's initiative.