The Reserve Bank of India (RBI) is set to pilot a locally-developed cloud data storage platform in 2025. This move aims to provide cost-effective cloud services tailored to the needs of smaller financial firms, according to confidential sources familiar with the project.
The initiative, a first among major global central banks, will leverage partnerships with local IT firms, positioning itself as a competitor to established global players such as Amazon Web Services, Microsoft Azure, Google Cloud, and IBM Cloud.
Expanding India’s Cloud Services Market
The Indian cloud services market, valued at $8.3 billion in 2023, is projected to grow to $24.2 billion by 2028, according to International Data Corporation. Despite its rapid growth, the market remains dominated by foreign firms.
RBI’s platform, initially spearheaded by its research arm, Indian Financial Technology and Allied Services (IFTAS), will cater specifically to smaller banking and financial firms unable to afford existing cloud offerings.
Phased Implementation and Development
The project will start small, with an initial pilot expected to launch in the next few months and a phased expansion planned over subsequent years. The cloud service is being designed in partnership with private-sector technology firms and will be funded initially by RBI’s asset development fund of ₹229.74 billion ($2.72 billion).
The central bank has appointed EY as an advisor to the project and will later invite financial firms to hold equity in the venture.
Data Localisation and Infrastructure Plans
The RBI’s initiative aligns with its ongoing push for data localisation in payments and financial services. The pilot project will mandate the use of data centres in Mumbai and Hyderabad, and only Indian-incorporated firms with prior expertise in cloud solutions are eligible to bid for the project.
“This is a significant opportunity for Indian IT and cloud firms. The RBI’s focus on localisation and cost-effectiveness will democratise access to high-quality cloud services for smaller financial firms,” said a senior executive involved in the project.
Widespread Interest from Private Sector
The RBI’s procurement document, released in October, has already garnered substantial interest from Indian IT and cloud companies eager to partner in the initiative. The move reflects India’s growing emphasis on digital transformation and reducing reliance on global technology giants.
With the launch of this cloud platform, the RBI aims to reshape the financial services industry’s infrastructure while fostering a competitive and locally-driven cloud ecosystem.
