RBI's Next-Gen Greenfield Data Centre to Begin Operations in FY25

The Reserve Bank of India (RBI) has initiated a project to construct a state-of-the-art greenfield next-generation data centre to address capacity expansion constraints and meet the increasing IT landscape needs while mitigating region-specific risks.

According to RBI's annual report for FY25, the data centre, designed to serve the internal requirements of RBI and its subsidiaries, is set to commence operations in the fiscal year 2025.

Furthermore, RBI is also focusing on upgrading the Indian Financial Network (INFINET 3.0) with enhanced technology, bandwidth, and overall services. INFINET 3.0, a closed user group (CUG) network exclusively used by member banks and financial institutions, hosts critical payment system applications such as RTGS, NEFT, and e-Kuber.

RBI stated, "It is proposed to be built with the latest software-defined wide area network (SD-WAN) technology. The features proposed under SDWAN include effective load balancing of the links, voice and video traffic optimization, and application-aware routing. SD-WAN also provides for centralized management of the network and zero-touch provisioning."

In an effort to propel the Indian Rupee onto global platforms more swiftly, RBI has conceptualized a solution wherein India’s domestic messaging system, SFMS, would be extended through a Global SFMS Hub to other countries. Interested countries can connect their local messaging systems to the Global SFMS Hub for cross-border payment messaging in their respective local currencies.

RBI believes this initiative may reduce India's dependence on other major trading currencies and could enhance foreign exchange management.

HBL