RBI plans light weight and portable payment system for critical transactions during catastrophic events

The Reserve Bank of India (RBI) is working on a Lightweight and Portable Payment System (LPSS) that can be used for critical transactions during a natural disaster or war. The system is specifically designed to facilitate crucial payments, and also sustain the liquidity flow of the economy, RBI disclosed in its latest annual report.
Keeping this objective in mind, RBI conceptualised LPSS. This payment system will be independent of conventional technologies and can be operated from anywhere by a bare minimum staff.
As a result of intricate wired networks and advanced IT infrastructure, payment systems such as RTGS, NEFT, and UPI have had to cope with high transaction volumes and maintain uninterrupted availability in the past.
According to the RBI, the system is expected to operate on minimalistic hardware and software. Additionally, it would be made active only on a need basis.
Notably, it would process transactions that are critical to ensure stability of the economy, such as government and market related transactions.
RBI also stated that this payment system could ensure zero downtime of payment and settlement system in the country. It will keep the liquidity pipeline of the economy alive and intact by facilitating uninterrupted.
The central bank also stated that having such a resilient system is likely to act as a bunker equivalent in payment systems. It will thereby enhance public confidence in digital payments and financial market infrastructure even during extreme conditions.
With inputs from agencies
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