- Pilot Launch: The initiative will launch in 2025, focusing on providing affordable local cloud storage solutions.
- Goal: The main objective is to offer cost-effective cloud services to smaller financial firms.
- Targeted Companies: Only Indian-registered companies with cloud technology experience are eligible to participate.
- Market Growth: India's cloud services market is projected to grow from $8.3 billion to $24.2 billion by 2028.
- Funding: The RBI has allocated ₹229.74 billion for the initial phases of the project.
- Data Centre Locations: The data centres will be set up in Mumbai and Hyderabad.
- Collaboration: The project involves local IT firms, IFTAS, and EY as consultants.
The Reserve Bank of India (RBI) is planning to launch a pilot project in 2025, which will provide affordable local cloud storage solutions specifically designed for financial firms in India. The move is aimed at creating competition for international cloud giants like Amazon Web Services, Microsoft Azure, and Google Cloud, who currently dominate the market.
The pilot is a significant step for central banks globally, marking India’s move to support its financial sector’s technological needs while ensuring data sovereignty. As part of this project, the RBI is focusing on smaller financial firms that may find current international cloud services too costly.
Key Highlights:
- Affordable Solutions: The pilot will focus on offering cloud storage options that are more affordable for smaller financial firms.
- Local Collaboration: The RBI is teaming up with Indian IT firms to develop and manage the platform.
- Market Growth: India’s cloud services market, valued at $8.3 billion in 2023, is expected to grow to $24.2 billion by 2028, providing a fertile ground for local cloud services.
- Data Sovereignty: The initiative aligns with India’s broader efforts to ensure that financial and payment data remains within the country’s jurisdiction.
- Pilot Programme Details: The pilot will start on a small scale and gradually expand to serve more financial firms across India.
The RBI’s initiative is being led by Indian Financial Technology and Allied Services (IFTAS), with consultancy firm EY providing guidance. It will be funded by the RBI’s ₹229.74 billion ($2.72 billion) asset development fund.
Only Indian companies with experience in cloud technology can bid for this project, as per an official procurement document. The data centres for the project will be located in Mumbai and Hyderabad to comply with India’s data sovereignty regulations.
This project not only aims to provide financial firms with affordable cloud services but also supports the government’s vision of boosting the local tech ecosystem and promoting data security.
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