365Telugu.com online news, November 18th,2024: India’s central bank, the Reserve Bank of India (RBI), is preparing to launch a pilot program in 2025 to provide cloud data storage services tailored for financial firms. This initiative aims to offer affordable and localized cloud solutions, directly competing with international players like Amazon Web Services, Microsoft Azure, Google Cloud, and IBM Cloud.
A Game-Changing Initiative
The RBI’s cloud platform, developed in collaboration with local IT firms, is a first-of-its-kind initiative by a major global central bank. The project reflects the RBI’s commitment to supporting smaller financial firms struggling with the high costs of existing cloud services.
The cloud services market in India, valued at $8.3 billion in 2023, is expected to triple to $24.2 billion by 2028, as per International Data Corporation (IDC). However, this market is currently dominated by foreign firms.
Phased Implementation
A senior executive involved in the project revealed that the RBI plans to begin small-scale implementation in the coming months, gradually expanding the pilot in phases over the next few years.
The project will cater specifically to the needs of smaller banking and financial services firms. The RBI governor, Shaktikanta Das, first announced this plan in December 2022. Initial groundwork is being led by the RBI’s research wing, the Indian Financial Technology and Allied Services (IFTAS), with future development involving partnerships with private-sector technology firms.
Localisation and Partnerships
The RBI is committed to data localisation, emphasizing the need to store and process financial and payments data within India. Only Indian-incorporated companies with expertise in cloud technology can bid for the project. These companies, or consortiums, will be required to establish data centers in Mumbai and Hyderabad.
There has been significant interest from private IT and cloud service providers eager to partner on this initiative, according to sources.
Project Funding and Advisory
Consultancy firm EY has been appointed as an advisor to the project. The initial funding will come from the RBI’s Asset Development Fund, valued at ₹229.74 billion ($2.72 billion). At a later stage, financial firms will be invited to hold equity in the venture.
The RBI’s ambitious foray into cloud services is set to redefine the Indian cloud landscape, providing smaller financial firms with affordable and secure solutions while ensuring data sovereignty. The initiative not only strengthens local capabilities but also challenges the dominance of global tech giants in India’s rapidly growing cloud market.