By Vineet Kumar 
India’s Central Bank to Launch Local Cloud Services in 2025, Challenging Global Giants
The Reserve Bank of India (RBI) is gearing up to shake up the cloud services market with a groundbreaking initiative. In 2025, it plans to roll out an affordable cloud platform tailored specifically for financial firms, marking the first time a major central bank has ventured into this space. This move is set to challenge established players like Amazon Web Services (AWS), Microsoft Azure, Google Cloud, and IBM Cloud.
Aiming for Affordability and Accessibility
The RBI’s cloud platform will rely on local IT firms, focusing on the needs of smaller financial institutions that often find existing services too pricey. The project’s initial phase will begin with a small-scale pilot in the coming months, gradually expanding in phases over the next few years.
“For smaller banks and financial firms, the high costs of global cloud services can be a deal-breaker. We want to provide a solution that’s both local and affordable,” said a senior executive involved in the project.
Imagine a small cooperative bank in rural India struggling to afford top-tier cloud services from global giants. The RBI’s platform could offer them a cost-effective alternative without compromising on data security or performance.
A Growing Market Dominated by Global Firms
India’s cloud services market, valued at $8.3 billion in 2023, is projected to nearly triple to $24.2 billion by 2028, according to the International Data Corporation. However, this market is currently dominated by foreign companies. With the new initiative, the RBI aims to carve out a local alternative, ensuring Indian firms benefit from this booming sector.
Built with Indian Expertise
The RBI’s research wing, the Indian Financial Technology and Allied Services (IFTAS), is leading the charge on this ambitious project. In collaboration with private-sector tech firms, the platform will be developed using the RBI’s asset development fund, which holds ₹229.74 billion ($2.72 billion). The RBI has roped in consultancy giant EY as an advisor for the project.
To ensure a truly Indian solution, the RBI has invited bids only from companies incorporated in India, with a requirement for prior experience in cloud solutions. These firms will also need to set up data centers in Mumbai and Hyderabad. According to sources, the response from Indian IT and cloud service providers has been overwhelmingly positive.
Driving Data Localization
This initiative aligns with the RBI’s broader push for data localization, ensuring that payment and financial data stay within India’s borders. For example, under the RBI’s guidelines, global firms like Mastercard and Visa had to set up local data storage facilities in India. The new cloud platform will extend this strategy, creating a secure, localized environment for financial firms.
What’s Next?
While the pilot is just the beginning, the RBI has bigger plans. At a later stage, it intends to invite financial institutions to hold equity in the project, creating a shared, collaborative ecosystem.
This move is not just about affordability or competition. It’s about creating a robust, self-reliant infrastructure that empowers Indian financial firms while keeping sensitive data within the country. With a mix of government backing, private-sector expertise, and the RBI’s vision, this project could redefine the future of cloud services in India.
