India's central bank, Reserve Bank of India (RBI), is planning to launch a cloud storage pilot program in 2025 aimed at providing affordable data storage solutions to financial institutions.
A key objective of this initiative is to promote local data sovereignty by reducing dependency on foreign cloud service providers. Thus, the initiative is designed to counter the dominance of global cloud service providers like Amazon Web Services (AWS), Microsoft Azure, Google Cloud, and IBM Cloud.
The platform will be developed in collaboration with local IT firms, promoting local data sovereignty and reducing dependency on foreign cloud services.
The primary goal is to offer cost-effective solutions, especially for smaller financial institutions that find existing cloud services unaffordable. The platform aims to provide affordable cloud storage solutions, especially for smaller financial institutions that find existing services unaffordable.
The project is being spearheaded by the RBI's research department, known as the Indian Financial Technology and Allied Services (IFTAS). The initial development will be done in collaboration with local IT firms.
In later stages, the RBI plans to invite financial firms to hold equity in the cloud service, ensuring broader participation and investment.
The pilot program will be expanded in phases over the next few years to cater to the needs of various financial institutions.
Consultancy firm Ernst & Young has been appointed as an advisor for the project.
Only Indian-registered companies with prior experience in cloud technology are invited to bid for the project. These companies must establish data centers in Mumbai and Hyderabad.
There has been a significant amount of interest from IT companies and Indian cloud service providers eager to partner on this project.
This move by the RBI is seen as a strategic step to enhance local data storage capabilities and support the financial services sector with reliable and affordable cloud solutions.
The cloud services market in India is expected to grow significantly, from $8.3 billion in 2023 to $24.2 billion by 2028. This initiative is expected to contribute to this growth by fostering local IT development.
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