RBI will provide banks with cloud services.

As part of its digital public infrastructure, the RBI will establish a cloud facility specifically for the financial industry.

The Indian Financial Technology & Allied Services (IFTAS), a subsidiary of RBI, would be responsible for the facility’s establishment and first operation. After that, the operational oversight will be transferred to a separate company owned by banking industry players.

The RBI has stated that the facility is not intended to pursue data sovereignty, but rather will be in the type of IT infrastructure to increase efficiency.

Payment companies were urged by RBI to make sure that data is stored in India. According to the statement, the facility would make scaling easier, especially for smaller banks.