Alternative to UPI, NEFT, RTGS: What is RBI’s planned ‘lightweight’ payments system for emergencies?
RBI says the lightweight and portable payment system is expected to operate on minimalistic hardware and software, and would be made active only on a “need basis”.
The Reserve Bank of India (RBI) has developed a lightweight and portable payment and settlements system called the "bunker" equivalent, intended for use in emergencies such as natural disasters or war. This system will function independently of existing payment technologies like UPI, NEFT, and RTGS. The RBI aims to ensure minimal downtime of the payment and settlement system by facilitating uninterrupted essential payment services, bulk payments, interbank payments, and cash provision to participant institutions. The lightweight system will prioritize critical transactions for the stability of the economy and act as a resilient bunker during extreme conditions, enhancing public confidence in digital payments. Unlike existing systems, which rely on complex wired networks and advanced IT infrastructure, the lightweight system will operate on minimalistic hardware and software, offering greater resilience in the face of catastrophic events that could disrupt conventional payment systems. The RBI has not provided a specific timeline for the launch of this new system.
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