Assertion (A): The future will see mostly the electronic money clearance through satellite networking.
Reasoning (R): RBI is encouraging e-banking.
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Correct option is C

The correct answer is (c) Both (A) and (R) are true and (R) is the correct explanation of (A).
The banking landscape has shifted dramatically toward a digital-first approach. Assertion (A) is true because the globalization of finance and the need for instantaneous settlements require robust satellite and fiber-optic networking to handle "electronic money" (digital currency, RTGS, NEFT, and UPI). Reasoning (R) is also true and directly explains (A); the Reserve Bank of India (RBI) actively promotes e-banking and digital payment ecosystems to reduce the dependency on physical cash, improve transparency, and lower transaction costs.
Information Booster
· Infrastructure: Systems like SFMS (Structured Financial Messaging System) in India use satellite communication (VSATs) to link bank branches for secure messaging.
· Digital Public Infrastructure (DPI): India's "India Stack" (Aadhaar, UPI, etc.) is a global benchmark for how a central bank-led initiative can drive electronic money clearance.
· CBDC: The RBI is currently piloting the Digital Rupee (Central Bank Digital Currency), which represents the next phase of electronic money beyond traditional net banking.
Additional Knowledge
· E-banking Benefits: It provides 24/7/365 access to banking services, reduces the physical "brick-and-mortar" overhead for banks, and allows for real-time monitoring of systemic risk by the RBI.
· Security: As the future moves toward satellite-based clearance, the focus has shifted heavily toward Cybersecurity and Encryption to protect the integrity of electronic money.