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Technology makes work easier, but with it comes different complications and risks. In recent years, other new technologies including UPI have brought digital payments to remote villages in India. This has made it easier to make payments and has eliminated the need to carry cash, but with it comes increased risk. It is possible that these systems may suddenly stop working. The Reserve Bank itself has accepted this fact.
completely different system
The Reserve Bank has talked about these apprehensions in the annual report released on Tuesday. The Central Bank has also told that it is preparing a payment system that will work under any circumstances. This system will be useful for important transactions during catastrophic events like natural calamities and war. This new system will be different from the existing payment technologies.
RBI has given this name
The Reserve Bank has named the proposed emergency system as ‘Light Weight and Portable Payment System’ ie LPSS. He said that LPSS would be different from traditional technologies and it would be possible to operate it from anywhere with very few employees. In such a situation, it will ensure that digital payment can be made in any emergency.
they are working now
Let us tell you that existing payment systems like Real Time Gross Settlement (RTGS), National Electronic Fund Transfer (NEFT) and Unified Payments Interface (UPI) have been prepared for large amounts of payments. One drawback with these systems is that they require advanced IT infrastructure and complex wiring networks.
Payment will be stopped in these situations
Now suppose that the enemy country attacks India and a fierce war breaks out. In such a situation, it will be difficult to run systems like RTGS, NEFT or UPI, because the necessary infra for them will not be available. More people are needed to run them. This is also a challenge. Similarly, a sudden catastrophic natural calamity can also destroy the entire system. Due to the stoppage of payment, many important works can be affected and the whole country can come to a standstill in one stroke. Keeping these circumstances in mind, the new system is being developed.
The Central Bank said this in the report
In its annual report released on Tuesday, the RBI said that in catastrophic events like natural disasters and war, existing systems may be temporarily shut down. Therefore it is wise to be prepared to face such odd situations. Keeping this in mind, RBI has envisaged LPSS, which will be independent of traditional technologies and can be operated from anywhere with minimal manpower.
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