RBI launching cloud service to rival AWS, Azure in 2025
The Reserve Bank of India (RBI) is gearing up to launch a one-of-a-kind cloud platform in 2025. The initiative, a first for any major global central bank, will utilize local IT companies. The move puts RBI in competition against international tech giants like Amazon Web Services (AWS), Microsoft Azure, Google Cloud, and IBM Cloud. The project was first announced by RBI Governor Shaktikanta Das in December last year.
RBI's cloud platform: A solution for financial firms
The RBI's cloud platform will provide affordable local data storage to financial firms. The pilot program will launch in 2025, two anonymous sources familiar with the project told Reuters. "We want to start implementing on a smaller scale in the next few months," one of the sources, a senior executive involved in the project, said. The service will specifically target smaller banking and financial services firms that find existing offerings unaffordable.
It will be expanded in a phased manner
The RBI's cloud service is expected to expand in phases over the next few years. The first phase of this project is being developed by the Indian Financial Technology and Allied Services (IFTAS), the research wing of the central bank. Subsequent phases would see the involvement of one or more private sector technology firms. Consultancy firm EY has also been roped in as an advisor to this project.
Funding and future plans
The first tranche of funding for the RBI's cloud project will be sourced from the central bank's asset development fund of $2.72 billion. In subsequent stages, financial firms will be invited to hold equity in the project. The final cost of this ambitious initiative remains undisclosed. This move comes as part of the central bank's push for localization of payments and financial data, further cementing India's position in the global financial sector.
A call for local IT firms
The RBI has only invited India-incorporated companies with experience in developing cloud-related solutions to bid for the project. This was revealed in a procurement document posted on the IFTAS website last month. The companies can apply individually or as a consortium, and will have to set up data center facilities in Mumbai and Hyderabad. "A significant number of IT companies as well as Indian cloud services companies have expressed their interest," a source told Reuters.
