The RBI is in the spotlight with a new plan to keep financial data safe in the cloud. Everyone is talking about it and it is a big deal in finance. But, wanting to keep things safe is making banks and fintech companies a bit nervous.
On December 8, the RBI shared its plan to create a special place in the cloud to keep financial data safe and sound. They want to make sure financial information is secure, private and can keep running smoothly. The RBI’s Indian Financial Technology & Allied Services (IFTAS) will set up and run this special cloud facility to give extra protection and efficiency to banks and financial companies.
Even though the RBI thinks this is a good idea, there’s a lot of confusion about exactly how it will work. People in the banking and fintech world are feeling uneasy because they don’t have all the details about how this new cloud system will operate.
T Rabi Shankar, the Deputy Governor at the RBI, said this plan is like a digital toolbox that can help smaller banks and cooperative banks. It makes handling their data easier and costs less.
People want to understand how it will keep information safe, keep things private and make sure everything runs smoothly for businesses as well.
The RBI is planning to roll out this new cloud system carefully over time. Right now, IFTAS will run it, but eventually, they want to hand it over to another group owned by financial companies.
Sanjay Gupta from Deloitte India thinks the RBI’s plan could solve worries about data security, privacy and costs. But for it to work smoothly, the RBI needs to give clear and detailed guidelines to make everyone in the banking world feel secure.
