Banks Seek RBI Nod for Cloud Services

Published on April 15, 2022
Current Context: The SCBs have sought the nod of the central bank to use cloud services for data storage.
Banks Seek RBI Nod for Cloud Services
  • Given the large volume of transactions, the Servers of the Scheduled Commercial Banks are not enough to host the transaction data. They are also vulnerable to a security breach as there is no standard encryption available to them on the storage.
  • The Cloud comes with AES (Advanced Encryption System) that allows them to encrypt the data. Also, there is no clear direction from the central government regarding the Data Protection Law.
  • While the cloud will give an upper hand to banks as they will be relieved from their own servers and security architectures. Cloud Infrastructure in India is at a nascent stage. RBI seeks Data Localization, which needs to be discussed, at length.


Q.1 What does Cloud Service refer to?
a. Storage of data on a virtual network that has a physical Server
b. A Security architecture supported by Quantum Computing
c. In house Server localisation
d. None of the Above

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