RBI to establish cloud infrastructure for financial sector to boost data security

By Puja Sharma

During the Reserve Bank of India’s Monetary Policy Committee (MPC) announcement, Das proposed the cloud facility. Das spoke about the establishment of a cloud facility for the Indian financial sector at the end of the press conference. In its fifth consecutive meeting, the central bank maintained a repo rate of 6.50%.

• According to the statement, RBI’s wholly-owned subsidiary Indian Financial Technology & Allied Services (IFTAS) will set up and operate the cloud facility. In the future, the cloud facility will be transferred to a separate entity owned by participants in the financial sector. This cloud facility is intended to be deployed in a phased manner in the medium term, as per the RBI governor.

While announcing a proposal for financial institutions (FIs) to setup data storage facilities in India in December 2023, RBI Governor Shaktikanta Das said that cloud computing will enhance data security and privacy.

“Banks and financial entities are maintaining an ever-increasing volume of data. Many of them are utilising various public and private cloud facilities for this purpose. The Reserve Bank is working on establishing a cloud facility for the financial sector in India,” read an RBI statement.

During the Reserve Bank of India’s Monetary Policy Committee (MPC) announcement, Das proposed the cloud facility. Das spoke about the establishment of a cloud facility for the Indian financial sector at the end of the press conference. In its fifth consecutive meeting, the central bank maintained a repo rate of 6.50%.

“The establishment and initial operation of the cloud facility will be undertaken by the Indian Financial Technology & Allied Services (IFTAS), a wholly-owned subsidiary of the Reserve Bank of India (RBI). Subsequently, the management of the cloud facility will transition to an independent entity owned by participants in the financial sector,” stated the RBI in a press release.

On how cloud facility will help financial institutions in India, V. Balasubramanian, CEO, FSS Cash Tech said, “RBI’s proposal to establish a cloud facility for the Indian financial sector is a move in the right direction. We’ve seen numerous instances of data breaches and all of us understand the importance of keeping customer data secure. Cloud technology is known to enhance privacy through its homogeneous architecture and centralised security, and guard against DDoS attacks.”

He noted, FSS has also recognized that cloud technology is the way forward in digital payments, which is why we have built FSS Blaze. In a world that is becoming increasingly digital, a cloud facility will be a win-win for everyone involved – regulators, companies, and customers. RBI’s move will accelerate the cloud movement in India, pushing for more Made in India Initiatives, we should have Bharat Cloud even for payments in India.”