The Reserve Bank of India (RBI) is set to launch a pilot program for a domestic cloud services platform in 2025, aiming to offer cost-effective data storage solutions tailored for smaller banks and financial firms. The initiative seeks to reduce reliance on global cloud giants like Amazon, Microsoft, and Google.

The RBI’s platform will leverage local IT companies to cater to smaller financial institutions often burdened by the high costs of existing cloud services. The rollout will occur in phases, with gradual expansion to address the specific needs of these firms.

India’s cloud market, valued at $8.3 billion in 2023, is projected to triple to $24.2 billion by 2028. Despite this growth, foreign players currently dominate the sector. Through its foray into cloud services, the RBI aims to provide a competitive and secure local alternative.

This initiative builds on RBI Governor Shaktikanta Das’s earlier announcement about creating a public cloud for the financial sector, underscoring the central bank’s commitment to enhancing data security while supporting domestic businesses.