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India’s central bank will reportedly launch a 2025 pilot for affordable local cloud storage for financial firms developed with domestic IT companies.
This initiative, unprecedented for a major global central bank, aims to challenge the market’s dominance of international providers like Microsoft Azure, Amazon Web Services, IBM Cloud, and Google Cloud.
🚨 RBI is Planning to Launch Local Cloud Storage For Banks & FinTech at Affordable Price
Currently Most Institutions Use AWS, Microsoft Azure, Google Cloud and IBM Cloud etc
Pilot Program To Start Next Year in 2025
This Could Be An Extremely Important Move
— Ravisutanjani (@Ravisutanjani) November 18, 2024
The information comes from two sources who are aware of the matter, who spoke to Reuters on the condition of anonymity due to the confidentiality of the discussions.
One source said the pilot will expand in phases in the coming years and be tailored to smaller banks and financial firms struggling with high costs.
The cloud project is reportedly led by the RBI’s Indian Financial Technology and Allied Services, with development continuing in partnership with private tech firms. EY has been appointed as an advisor.
According to the second source, the project will be initially funded by the RBI’s asset development fund of 229.74 billion rupees ($2.72 billion), with plans to offer equity to financial firms later.
RBI Pushes for Local Cloud Solutions
India’s cloud services market, valued at $8.3 billion in 2023, is expected to grow to $24.2 billion by 2028, as reported by International Data Corporation. However, it remains largely dominated by foreign firms.
In December 2024, RBI Governor Shaktikanta Das announced plans for a public cloud for the financial services industry, with previously undisclosed details.
The RBI has invited bids for the project from Indian companies with expertise in cloud solutions, as outlined in a procurement document on the IFTAS website. Applicants can submit bids individually or as part of a consortium, with a requirement to set up data centers in Mumbai and Hyderabad.
Developed in collaboration with local IT firms, the cloud service supports the central bank’s push for localized payments and financial data.
