RBI mulls lightweight payments & settlements for smooth ops during calamity

The system will ensure zero processing downtime during catastrophes such as natural disasters and war

The Reserve Bank of India is working on a Lightweight Payment and Settlement System (LPSS) to ensure that the processing of transactions continues without disruption during catastrophic events such as natural calamities and war. The system is expected to keep the liquidity pipeline of the economy alive and ensure economic stability.

Existing conventional payment systems such as RTGS, NEFT and UPI are designed to handle large volumes while ensuring sustained availability. Hence they are dependent on complex wired networks backed by the advanced IT infrastructure.

However, events such as natural calamities and war could temporarily hinder payment systems by disrupting the underlying