In a groundbreaking move, the Reserve Bank of India (RBI) is set to launch a pilot program for cloud data storage services in 2025. This initiative aims to provide affordable cloud solutions to financial firms, challenging the current dominance of global giants like Amazon Web Services, Microsoft Azure, Google Cloud, and IBM Cloud.
Key Highlights
Local Partnerships: The RBI’s cloud platform will partner with Indian IT firms, marking a significant shift in the cloud services market, which is expected to grow from $8.3 billion in 2023 to $24.2 billion by 2028.
Pilot Program: The initiative will begin on a smaller scale, with plans to expand over the coming years. This phased approach is designed to meet the needs of smaller banking and financial services firms that find existing services too costly.
Data Localization: The RBI is emphasizing data localization, requiring that companies involved in the project be incorporated in India and have prior experience in cloud solutions. Data centers will be established in Mumbai and Hyderabad.
Project Development: The initial phase is driven by the RBI’s research wing, Indian Financial Technology and Allied Services (IFTAS), and further development will involve private sector partners. Consultancy firm EY has been appointed as an advisor.
Funding and Investment: The project will initially be funded by the RBI’s asset development fund, with plans to invite financial firms to hold equity at a later stage.
This initiative not only supports the RBI’s push for data localization but also opens new opportunities for Indian IT firms. The central bank’s project marks a significant step in reshaping the financial technology landscape in India.
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