The Reserve Bank of India (RBI) has announced the establishment of a dedicated cloud facility for the financial sector in India, aimed at enhancing data security, scalability, and business continuity. The Indian Financial Technology and Allied Services (IFTAS), an RBI subsidiary, will initially operate the cloud, later transitioning it to an independent entity owned by financial sector participants. In a parallel move, the RBI plans to operationalize a fintech repository through the Reserve Bank Innovation Hub by April 2024. This repository will house information about fintech companies' activities, products, technology stack, and financial details, with participation being voluntary.
Deputy Governor T Rabi Shankar clarified that the motive behind the public cloud initiative was to improve efficiency, especially for smaller entities and cooperative banks, rather than addressing data sovereignty concerns. The move is expected to offer scale efficiency, eliminating the need for individual databases and substantial investments.
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RBI also disclosed plans to issue a draft circular for public comments on a regulatory framework for connected lending by all regulated entities. Additionally, the regulatory body will introduce comprehensive guidelines for web aggregators of loan products (WALPs) to enhance transparency and customer-centricity. Furthermore, the RBI has raised the UPI transaction limit for payments to hospitals and educational institutions from ₹1 lakh to ₹5 lakh and adjusted e-mandate requirements for certain financial transactions, simplifying the user experience.
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