Payment System Update: The Reserve Bank of India (RBI) is working on creating a new payment system that is lightweight and portable.
This system will be useful for conducting important transactions during natural disasters and situations similar to war. According to the RBI, this proposed Light Weight and Portable Payment System (LPSS) will not rely on traditional technology. Specially trained personnel will be able to operate this system from anywhere it is needed.
Current payment systems rely on IT infrastructure
The existing payment systems, such as RTGS, NEFT, and UPI, are designed to handle large-scale payment transactions. These systems operate on advanced IT infrastructure. The Reserve Bank of India (RBI) has stated that in the event of a natural disaster or war, these payment systems can be made temporarily available by disrupting the underlying information and communication infrastructure.
To effectively deal with any situation, it is important to have a system that can be used in any condition. Keeping this objective in mind, the RBI has developed the Light Weight and Portable Payment System (LPSS). This system is independent of traditional technology and can be operated from anywhere by a small number of employees.
The RBI has stated, “The LPSS is expected to function with minimal hardware and software requirements. It will be activated when needed and will be useful for conducting crucial transactions that contribute to the stability of the economy, such as government and market-related transactions.”