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    Question

    With reference to the lightweight payments, consider the

    following statements: 1. The lightweight payments are dependent on the existing system of payments like UPI and RTGS. 2. It will facilitate the uninterrupted functioning of essential payment services. Which of the statement(s) given above is/are correct?
    A 1 only Correct Answer Incorrect Answer
    B 2 only Correct Answer Incorrect Answer
    C Both 1 and 2 Correct Answer Incorrect Answer
    D Neither 1 nor 2 Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    — The Reserve Bank of India (RBI) has conceptualised a lightweight payment and settlements system, which it is calling a “bunker” equivalent of digital payments, which can be operated from anywhere by a bare minimum staff in exigencies such as natural calamities or war. — The infrastructure for this system will be independent of the technologies that underlie the existing systems of payments such as UPI, NEFT, and RTGS.  Hence, statement 1 is not correct. — The lightweight and portable payment system could ensure near zero downtime of the payment and settlement system in the country and keep the liquidity pipeline of the economy alive and intact by facilitating uninterrupted functioning of essential payment services like bulk payments, interbank payments and provision of cash to participant institutions.  Hence, statement 2 is correct. — The system is expected to process transactions that are critical to ensure the stability of the economy, including government and market related transactions.

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