Description

The Reserve Bank of India (RBI) is laying the groundwork for a lightweight payment and settlements system, called a "bunker."

The Lightweight Payment System's Goal

The RBI sees the lightweight payment system as a way to ensure the continuity of vital payment services. This technology is intended to ensure minimal downtime during critical times, hence maintaining the economy's liquidity stream. The system protects financial operations by processing transactions critical to the economy's stability, such as government and market-related transactions.

Distinguishing The Lightweight System From Other Systems

In terms of design and purpose, the lightweight payment system differs from existing systems such as UPI, NEFT, and RTGS. While traditional systems are built to handle high transaction volumes and continuous availability, the lightweight system is designed to withstand extreme and volatile scenarios. Existing systems are vulnerable to disruptions caused by natural disasters or war because they rely on complicated wired networks, and advanced IT technology.

The Infrastructure's Independence

One of the most important elements of the lightweight system is that its infrastructure is independent of conventional payment systems' underlying technologies. The lightweight solution can provide operational continuity even if traditional payment channels are disrupted because it does not rely on the complicated networks of UPI, NEFT, or RTGS.

The Lightweight System's Role In Extreme Conditions

The RBI refers to the lightweight payment system as a payment system's bunker equivalent. During natural disasters or conflict, the lightweight system can provide a dependable and resilient solution. It operates on minimum hardware and software and is only active when needed, ensuring that payment and settlement services are available even when the information and communication infrastructure is down.

Preparing For The Extreme Situation

Maintaining the liquidity pipeline and confidence in digital payments requires a lightweight payment system that is prepared for extreme events. Traditional payment systems may become temporarily unavailable during disruptions caused by natural disasters or war. The lightweight system functions as a resilient solution by providing uninterrupted payment services, ensuring economic stability and increasing public confidence.

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