India’s digital payments ecosystem continues its rapid expansion as the Reserve Bank of India (RBI) announced on Monday that its Digital Payments Index (RBI-DPI) surged to 493.22 in March 2025, up from 465.33 in September 2024.

Introduced in January 2021 with March 2018 as the base period set at 100, the RBI-DPI measures the extent of digitisation in the country’s payment systems. The latest increase highlights robust growth driven by improved payment infrastructure, wider merchant acceptance, increased QR code adoption, and the continuing rise in Unified Payments Interface (UPI) transactions.

The index has maintained a consistent upward trajectory since inception. It climbed from 153.47 in March 2019 to 207.84 in March 2020, reaching 349.30 by March 2022. In March 2024, it was recorded at 445.50, later rising to 465.33 in September 2024. The current reading of 493.22 reflects over a fourfold increase in digital payment activity since 2018.

According to the RBI, strong supply-side enhancements and better payment performance have fueled this momentum. Government initiatives like Digital India, increasing smartphone penetration, and proactive fintech innovations have further accelerated digital adoption across both urban and rural regions.

As India advances towards becoming a fully digital economy, the RBI-DPI is expected to serve as a crucial benchmark for policy decisions and the overall progress of financial digitisation. The latest surge reinforces India’s position as a global leader in digital payments while setting the stage for the next wave of fintech-driven innovations.