Comments
The Reserve Bank of India (RBI) is working on establishing a cloud facility for the financial sector in India. The proposed facility would enhance the security, integrity and privacy of financial sector data.
“Banks and financial entities are maintaining an ever-increasing volume of data. Many of them are utilising various public and private cloud facilities for this purpose,” RBI said, adding that such a facility is also expected to facilitate scalability and business continuity.
The cloud facility will be set up and initially operated by Indian Financial Technology & Allied Services (IFTAS), a wholly-owned subsidiary of RBI. Eventually, the facility will be transferred to a separate entity owned by financial sector participants.
RBI to set up fintech repository for better ecosystem tracking
This cloud facility is intended to be rolled out in a calibrated fashion in the medium term, the central bank said.
“RBI’s announcement of a financial sector cloud service is exciting from a techno-regulatory perspective. The cloud service could effectively help centralise data/ services hosting for financial institutions,” said Rajat Deshpande, CEO and Co-founder, FinBox.
RBI to introduce regulatory framework for loan aggregation services
“Effectively, it implies that at some point, banks, NBFCs, and other participants might be nudged to store their data on this cloud, rather than on third-party services that are currently in vogue. This might help financial institutions access a cloud facility that ensures data security, integrity, and automatic compliance with the relevant regulatory guidelines.”
In the post policy conference, Deputy Governor T Rabi Sankar said that increasing data storage and efficiency of data processing is a major issue and currently data is stored both in-house on premises or external cloud systems.
“The basic driver behind this is to provide a structured, scalable data storage and data processing facility which is why the cloud has been talked about. The idea is to ensure security, integrity and safety of data. It has got nothing to do with data sovereignty,” he said, adding that a decision on what services will be provided in terms of infrastructure or software or platforms will be taken in due course of time.
“We’ve seen numerous instances of data breaches and all of us understand the importance of keeping customer data secure. Cloud technology is known to enhance privacy through its homogeneous architecture and centralised security, and guard against DDoS attacks. In a world that is becoming increasingly digital, a cloud facility will be a win-win for everyone involved – regulators, companies and customers.,” said V. Balasubramanian, CEO, FSS Cash Tech, adding that there should also be a Bharat Cloud for payments in India.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.