It has been reported that the Reserve Bank of India is planning to set up a cloud data storage facility to store the data of the country’s financial institutions domestically.
The research wing of the Reserve Bank,
The financial sector watchdog, is involved in the initial work of setting up this cloud facility.
Once the specified target is reached, the Reserve Bank is said to be planning to set up a very large data storage facility in collaboration with one or two private companies.
International private companies including Amazon Web Services, Google Cloud, IBM, Cloud, Microsoft Azure, etc. are currently dominating the data storage service.
Rs.70,000 crore
Data storage market value in India by 2023
Rs.2,00,000 crore
Projected market value in the next 3 years
Rs.23,000
To be spent from the Reserve Bank’s Asset Development Fund.
In the context of the development of information technology, there are fears that sensitive financial and personal information may be stored in the storage of these companies with servers abroad, which could lead to security vulnerabilities.
In this context, the Reserve Bank of India, in a first-of-its-kind initiative, is planning to set up a data repository in the country to ensure the security of information of financial institutions, said an official in Mumbai, who did not wish to be named.
The pilot project for this is likely to start in a few months; he said that the data of small banks and financial institutions will be stored in the first phase by 2025.