{"id":245587,"date":"2023-05-31T20:13:36","date_gmt":"2023-05-31T14:43:36","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=245587"},"modified":"2023-05-31T20:13:36","modified_gmt":"2023-05-31T14:43:36","slug":"alternative-to-upi-neft-rtgs-what-is-rbis-planned-lightweight-payments-system-for-emergencies","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/alternative-to-upi-neft-rtgs-what-is-rbis-planned-lightweight-payments-system-for-emergencies\/","title":{"rendered":"Alternative to UPI, NEFT, RTGS: What is RBI\u2019s planned \u2018lightweight\u2019 payments system for emergencies?"},"content":{"rendered":"\n

Source: <\/b>The post is based on the article<\/span> \u201c<\/b>Alternative to UPI, NEFT, RTGS: What is RBI\u2019s planned \u2018lightweight\u2019 payments system for emergencies?<\/b>\u201d <\/b>published i<\/span>n Indian Express <\/b>on 31st May 2023<\/b><\/p>\n

What is the News?<\/b><\/h2>\n

The Reserve Bank of India(RBI) has conceptualized a <\/span>Lightweight Payment and Settlements System.<\/b><\/p>\n

What is the Lightweight<\/b> Payment and Settlement System (LPSS)?<\/b><\/h2>\n

Lightweight Payment and Settlement System (LPSS) aims to ensure that the processing of transactions continues without disruption during catastrophic events such as natural calamities and war.\u00a0<\/span><\/p>\n

The system is expected to keep the liquidity pipeline of the economy alive and ensure economic stability. This system can be operated from anywhere by a bare minimum of staff.<\/span><\/p>\n

This new payment system will be independent of conventional technologies used for existing payment systems such as RTGS, NEFT, and UPI.\u00a0<\/span><\/p>\n

Why is there a need for a Lightweight<\/b> Payment and Settlement System (LPSS)?<\/b><\/h2>\n

According to RBI, existing conventional payment systems such as RTGS, NEFT, and UPI are designed to handle large volumes of transactions while ensuring sustained availability.<\/span><\/p>\n

As a result, they are dependent on complex wired networks backed by advanced IT infrastructure.<\/span><\/p>\n

However, catastrophic events like natural calamities and war have the potential to render these payment systems temporarily unavailable by disrupting the underlying information and communication infrastructure.<\/span><\/p>\n

Hence, it is prudent to be prepared to face such extreme and volatile situations. In this context, a <\/span>Lightweight<\/span> Payment and Settlement System (LPSS) is being planned.<\/span><\/p>\n

What are the expected benefits of the <\/b>Lightweight<\/b> Payment and Settlement System (LPSS)?<\/b><\/p>\n

Firstly,<\/b> the <\/span>lightweight and portable payment system is expected to operate on minimalistic hardware and software and would be made active only on a need basis. <\/span>Hence, it would ensure near-zero downtime of the payment and settlement system in the country and keep the liquidity pipeline of the economy alive and intact.<\/span><\/p>\n

Secondly,<\/b> the system is expected to process transactions that are critical to ensure the stability of the economy, including government and market-related transactions.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Source: The post is based on the article \u201cAlternative to UPI, NEFT, RTGS: What is RBI\u2019s planned \u2018lightweight\u2019 payments system for emergencies?\u201d published in Indian Express on 31st May 2023 What is the News? The Reserve Bank of India(RBI) has conceptualized a Lightweight Payment and Settlements System. What is the Lightweight Payment and Settlement System… Continue reading Alternative to UPI, NEFT, RTGS: What is RBI\u2019s planned \u2018lightweight\u2019 payments system for emergencies?<\/span><\/a><\/p>\n","protected":false},"author":10317,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127,9],"tags":[10500],"class_list":["post-245587","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","category-public","tag-indian-express","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/245587","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10317"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=245587"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/245587\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=245587"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=245587"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=245587"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}