Key Points
In response, the RBI has conceptualised a lightweight and portable payment system that operates independently of conventional technologies, ensuring uninterrupted transactions in extreme situations...
The conventional payment systems heavily rely on complex wired networks and advanced IT infrastructure to handle large transaction volumes while maintaining sustained availability..
By offering a resilient solution, the lightweight payment system acts as a bunker equivalent for payment systems, enhancing public confidence in digital payments and financial market infrastructure...
Such a lightweight and portable payment system could ensure near-zero downtime of payment and settlement system in the country and keep the liquidity pipeline of the economy alive and intact by facilitating uninterrupted functioning of essential payment services like bulk payments, interbank payments and provision of cash to participant institutions, RBI said...
By reducing dependency on complex infrastructure and offering a reliable platform for critical transactions, the system strengthens the stability of the economy and boosts confidence in digital payments and financial market infrastructure...
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Explainer: RBI exploring disaster-proof payments
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RBI working on light weight, portable payment system for critical transactions during catastrophic events
30, May, 23The Reserve Bank of India (RBI) is developing a lightweight and portable payment system designed to operate during war or natural disasters without relying on complex wired networks. It will be called the Light weight and Portable Payment System (LPSS) and is expected to have minimalistic hardware and software and will only be made active on a need basis. The system will handle critical transactions for the economy, such as those related to the government and markets, and help maintain liquidity. RBI said the LPSS could help ensure a near-zero downtime of the payment and settlement system and enhance public confidence in digital payments.