A new technology developed by Institute for Development and Research in Banking Technology (IDRBT), an arm of the Reserve Bank of India (RBI), is now all set to be deployed to increase last mile connectivity of banking services in remote areas.

The financial network technology, based on LoRa (Long Range) wireless protocol, has been successfully tested at the field level and is now being looked into by the RBI and other stakeholders, D Janakiram, Director, IDRBT, told businessline.

“RBI is keen on taking this further. TCL, which supported us in implementation of the technology at an actual operational level pilot, is also coming up with strategies for deployment by banks,’‘ he said, adding Nabard was also exploring various options to use this financial technology.

Financial network

The new dedicated low cost financial network based on LoRa protocol can be used privately by banks to send encrypted financial packets to conduct financial transactions. Hyderabad-based IDRBT is the first in the world to develop this private financial network based on LoRa technology. It has protected the IP by filing a patent as well for offline transactions, according to Janakiram.

The cost of the LoRa financial network is estimated to be 20 per cent cheaper than alternative network technologies being used today.

Banks can use LoRa as their own dedicated private network instead of using a third party network, which are presently either wired (fibre) or through satellite links. As it can be owned by banks privately, there will be more security from cyberattacks. Apart from being a more secure platform, LoRa network also allows easy recoverability and upgradation.

Portability

The portability of these devices that work on batteries make them suitable to any situations/areas including the hilly regions and those affected by the natural calamities like floods.

The last mile connectivity of the banking system can be expanded further with the LoRa financial network. Connectivity from where the last branch of a bank stands can be extended to a remote village or hilly region by using LoRa financial network. It will also facilitate setting up Micro- ATMs and their efficient functioning, the IDRBT Director said.

“There could be a wide range of applications. For example, digital transactions in Pradhan Mantri Jan Dhan Yojana (PMJDY) bank accounts can be facilitated. It can have applications in the public distribution system too,’‘ he added.