 Hello and welcome to Chanakya IS Academy's daily current news analysis. I am Priya Kumari. Today's topic is digital payment system. So before that let's see the points of discussion that why this topic is in news, what is digital payment, what is RBI's digital payment index, key features of digital payment index and its significance. So why this topic is in news? The Reserve Bank of India released a digital payments index to measure the growth in cashless transactions in India. The Reserve Bank of India digital payment index has been constructed with March 2018 as the base period. The DPI for March 2019 and March 2020 work out to 153.47 and 207.84 respectively indicating appreciable growth. What is digital payment? Digital payment is a way of payment which is made through digital modes. In this, payer and paying both use digital modes to send and receive money. This is also called electronic payment. The digital payments in ecosystem is currently dominated by large technology players including Paytm, PhonePay, GooglePay or Gpay and recently launched WhatsApp payments. India's digital payments had shot up to 82% in the current fiscal years, quarterly two along with a 99% jump in value from the year ago period. This fact is according to the Worldline India digital payments report. Now what is RBI's digital payment index? So this index was recommended by a committee headed by Nandan Nilekani on deepening digital payment. The digital payment index will assess and capture the extent of digitalization of payments effectively. RBI's digital payment index will be published on the central bank's website on a semi-annual basis from March 2021 onwards with a lag of four months that is every four months this will be published on banks website. The objective of digital payment index is to reflect accurately the penetration and deepening of various digital payment mode. Now the key features of digital payment index will be based on multiple parameters and they are payment enablers which weigh around 25% payment infrastructure that is on demand side factors which weighs around 10% payment infrastructure supply side factors 15% payment performance 45% and consumer centricity 5%. Now each of these parameters has sub-parameters which in turn consists of various measurable indicators. So what is the significance of this recently launched digital payment index? So this will help in bridging the gap of digital divide. The digital payment index could also lead to reduction in poverty and economic inequality. RBI will also set up a new self-regulatory organization that is SRO which will work to enhance the communication between payment sector stakeholders. This is a composite scoring system and it will allow both consumers and stakeholders to better study the local area developments in infrastructure access demography and acceptance related growth. So that's all for today's topic. Thank you and we will meet you in the next topic. Take care and goodbye. Don't forget to like share and subscribe to our channel and press the bell icon to never miss an update.