RBI Could Launch Its Cloud Services in 2025 to Take On International Firms

India's central bank will launch a pilot programme in 2025 offering local cloud data storage to financial firms at affordable prices, according to two sources aware of matter, who declined to be identified as conversations are confidential. Reserve Bank of India's planned cloud platform will use local IT firms, pitting it against likes of Amazon Web Services, Microsoft Azure, Google Cloud and IBM Cloud, in a first-of-its-kind initiative from a major global central bank.

burgeoning cloud services market in Asia's third largest economy was estimated at $8.3 billion in 2023 and is expected to grow to $24.2 billion by 2028, according to a report, opens new tab by International Data Corporation, but it is largely dominated by foreign firms.

“We want to start implementing on a smaller scale in next few months,” said one of two sources, a senior executive working on project.

pilot will be expanded in phases over next few years, source said, ding cloud service will be built keeping in mind needs of smaller banking and financial services firms who find existing offerings unaffordable.

In December last year, RBI governor Shaktikanta Das announced plans to set up a public cloud for financial services industry. Details of project have not been previously reported. RBI did not respond to an email from Reuters seeking details of project. Initial work on cloud is being driven by research wing of central bank called Indian Financial Technology and Allied Services. It will n be developed furr in partnership with one or more private sector technology firms, according to sources.

Consultancy firm EY has been appointed as an visor to project. project will initially be funded by central bank's asset development fund of 229.74 billion Indian rupees ($2.72 billion), second source said, ding that at a later stage central bank will invite financial firms to hold equity.

Reuters could not determine estimated final cost of project.

Data localisation imperative

Setting up a cloud service built in partnership with local IT firms is a furr step in central bank's push for localisation of payments and financial data.

RBI has invited only companies incorporated in India with prior experience of building cloud-related solutions to bid for project, as per a procurement document published on IFTAS website in October. Companies can apply by mselves or as part of a consortium and would be required to set up data centre facilities in Mumbai and Hyderab.

"We have a humongous amount of interest (from private players who want to partner). A significant number of IT companies as well as Indian cloud services companies have expressed ir interest," source ded.