Radio Technology in Banking

  • IASbaba
  • September 24, 2022
  • 0
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In News: The Institute for Development and Research in Banking Technology (IDRBT) develops a new low-cost financial network called LoRa (Long Range Radio) technology to take banking to remote areas. They are the first in the world to develop this network.

The Mechanics:

  • LoRa or Long-Range Radio technology is a wireless modulation technique which allows long-range communication using chirp spread spectrum.
  • It uses dedicated radios and limits interferences from other devices.
  • Presently, banks use a third-party network which based either on satellite link or wired (fibre)
  • Now, banks can use this technology as their own private network and send encrypted texts to conduct financial transactions.
  • Connectivity to remote areas begins from where the last branch of a bank stands in a remote village or hilly region.
  • A 30-mile connectivity for bank transactions can be achieved at a cost of ₹30,000 and the same is extendable.


  • Last mile connectivity: it will be possible for people in remote hilly and forest areas without satellite signal to access banking services.
  • More secure: better safety from cyber attacks
  • Cheaper: estimated to be 20% cheaper than alternative network technologies
  • Easy recoverability and upgradation
  • Almost no maintenance & ensures portability of devices.

About IDRBT:

  • It is an engineering training institution exclusively focused on banking technology.
  • Established by the RBI in 1996, the institution works at the intersection of banking and technology.
  • Its foundations were laid by the Rangarajan Committee
  • It is located in Hyderabad, India.

Source: The Hindu              

Previous Year Question

Q.1) In which of the following areas can GPS technology be used? (2018)

  1. Mobile phone operations
  2. Banking operations
  3. Controlling the power grids

Select the correct answer using the code given below:

  1. 1 only
  2. 2 and 3 only
  3. 1 and 3 only
  4. 1, 2 and 3     


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