The Reserve Bank of India (RBI) is preparing to disrupt the cloud services market by introducing an affordable, localized cloud storage solution for financial institutions in 2025. This initiative, led by the RBI’s Indian Financial Technology and Allied Services (IFTAS), targets smaller banks and financial firms struggling with the high costs of existing cloud services dominated by global providers like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud.
Key Highlights of the Initiative:
- Affordable Cloud Storage: Tailored for smaller financial entities to make data storage more cost-effective.
- Focus on Data Sovereignty: Aims to promote local data hosting and reduce dependency on international providers.
- Phased Implementation: Starting with a pilot program, the rollout will expand to accommodate diverse financial institutions over time.
- Industry Participation: Financial firms may have the opportunity to invest in the platform, fostering shared ownership and innovation.
This move aligns with the anticipated growth of India’s cloud services market, projected to rise from $8.3 billion in 2023 to $24.2 billion by 2028. By fostering homegrown IT capabilities, the RBI is poised to strengthen the financial sector’s infrastructure while ensuring compliance with data localization norms. The initiative represents a significant step toward empowering the financial ecosystem with secure, cost-efficient, and scalable cloud solutions.
