LoRa (Long Range Radio)

Syllabus: General Studies Paper 3

Institute for Development and Research in Banking Technology (IDRBT), an arm of the Reserve Bank of India (RBI) 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.

About Long Range Radio (LoRa)

• LoRa technology is a wireless modulation technique in the physical layer, allowing long-range communication using chirp spread spectrum.
• LoRa technology uses dedicated radios, which are not usually present in end-user devices, limiting interferences from other devices.
• LoRa is ideal for applications that transmit small chunks of data with low bit rates.
• It is a new dedicated low cost financial network that can be used privately by banks to send encrypted texts to conduct financial transactions.
• 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

• The last mile connectivity of the banking system can be expanded with the LoRa financial network. “
• Connectivity to can begin from where the last branch of a bank stands in a remote village or hilly region by using this. 
• A 30 mile connectivity to ensure bank transactions can be achieved with setting up of three nodes with a cost of ₹30,000. 
• The cost of the LoRa financial network is estimated to be 20 per cent cheaper than alternative network technologies with an additional advantage of almost no maintenance and portability of devices. 
• More secure, better safety from cyber attacks
• 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.