Cloud Facility for Financial Sector Governor Das

To combating data security and cybercrime, the Reserve Bank of India (RBI) announced during the monetary policy announcement on Friday that it would introduce a dedicated cloud facility for the financial sector. The cloud facility aims to enhance privacy, scalability, and business continuity.

The Reserve Bank of India (RBI) Governor, Shaktikanta Das, announced the establishment of a cloud facility for the Indian financial sector. This move aims to enhance data security and privacy in the digital financial ecosystem.

RBI Governor Shaktikanta Das' statement read, "Banks and financial entities are maintaining an ever-increasing volume of data. Many of them are utilising the cloud facilities for this purpose. The Reserve Bank is working on establishing a cloud facility for the financial sector in India for this purpose."

Key Points:

The cloud facility will be a digital public infrastructure, accessible to all regulated financial entities.

It will offer secure and scalable storage for financial data, promoting innovation and efficiency.

The initiative is not aimed at data sovereignty, but rather to provide a secure and robust platform for financial transactions.

The cloud facility is designed not only to enhance security measures but also to provide better scalability and ensure business continuity. RBI envisions a calibrated rollout of this cloud facility over the "medium term," aligning with the evolving needs of the financial sector in India.

Benefits of the Cloud Facility:

Enhanced data security and privacy: The cloud facility will utilize advanced security measures to protect sensitive financial data.

Improved operational efficiency: Financial institutions will be able to access and manage their data more efficiently.

Boosted innovation: The cloud platform will facilitate the development of new financial products and services.

Increased access to financial services: The initiative could help bring financial services to a wider population.

Next Steps:

The RBI is currently working on the design and development of the cloud facility.

The central bank is also engaging with stakeholders in the financial sector to gather their feedback.

The facility is expected to be operational in the near future.

This highlights the urgency for robust measures to combat cyber threats and safeguard sensitive financial data. Whereas, experts says, Governor Das has not spoken on the growing challenge Data Privacy issue, where the Financial sector is struggling every minutes and seconds due to synthetic frauds. Synthetic identity theft allows the criminal to steal money from creditors including credit card companies who extend credit based on the fake identity.

Overall, the establishment of a cloud facility for the financial sector is a significant step forward for India's digital economy. This initiative has the potential to improve data security, boost innovation, and promote financial inclusion.