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Source – This post is based on the article “RBI to offer cloud storage services as part of digital public infrastructure” published in “The Indian Express” on 8th December 2023.
Why in the News?
The Reserve Bank of India (RBI) is working on establishing a cloud facility for the financial sector in India.
What is the Cloud Centre for Financial Data?
1) It aims to provide a structured, scalable data storage and data processing facility.
2) It will be part of the Digital Public Infrastructure (DPI)
3) The facility will be set up and initially operated by the Indian Financial Technology & Allied Services (IFTAS), a wholly-owned subsidiary of RBI. Eventually, the cloud facility will be transferred to a separate entity owned by the financial sector participants.
What is the Significance of the move?
1) Enhance the security, integrity and privacy of financial sector data.
2) Alternative to similar services offered by American companies like Amazon, Google and Microsoft.
3) For smaller organizations such as cooperative banks, this offers significant efficiency in scaling since maintaining individual databases for each one could require substantial investments and specialized skills.
5) It will empower the financial sector to utilise next-generation technologies, including AI, platform automation, etc.
UPSC Syllabus: Indian Economy
