Economics
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.
Significance:
- 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)
- Mobile phone operations
- Banking operations
- Controlling the power grids
Select the correct answer using the code given below:
- 1 only
- 2 and 3 only
- 1 and 3 only
- 1, 2 and 3
