New Delhi: With aim to secure data and keep the records away from potential cross-border threat zones and high seismic-risk regions, the Reserve Bank of India (RBI) has built a high-security data centre in Odisha.
The new infrastructure has been established to safeguard critical financial infrastructure and strengthen continuity of core systems.
The RBI has built the greenfield facility in Bhubaneswar to house core computing systems supporting the central bank’s currency management, payment and settlement operations, and regulatory data functions, analysts and officials said.
RBI Builds High-Security Data Center in Odisha
“When RBI began work on its 18.55-acre campus at Info Valley-II, Khordha in 2023, few questioned the location. Beyond logistical and operational considerations, strategic factors are likely to have weighed on decision-makers,” an analyst was quoted by PTI as saying.
The analyst said RBI’s decision to set up the site in Odisha is a well thought out one as the are is very far away from India’s western and northern borders, which it reduces exposure to potential cross-border missile or drone threats.
The infrastructure has been built in area which is outside highest seismic risk zones, lowering vulnerability to major earthquake activity – factors that “strengthen the safety and continuity framework for infrastructure that underpins critical financial systems,” he said.
RBI has another Primary Data Centre located in Kharghar, Navi Mumbai.
Safeguarding India’s Critical Financial Infrastructure
Another analyst noted that unlike Mumbai and Chennai – which host a large share of India’s data centres – Odisha is not a landing point for major subsea communication cables. By situating the facility away from these hubs and dense digital traffic corridors, the RBI may be seeking infrastructure that is more insulated from concentrated cyber risks and network vulnerabilities, he added.
Notably, the central banking authority’s new site idea reportedly cropped up from last years’ incident when a leading commercial bank reportedly shifted its data centre operations overnight from Jaipur to Mumbai amid India-Pakistan conflict.
Analysts said that worldwide, central banks and financial institutions are increasingly building and operating their own secured data centres, prioritising data safety, operational control and systemic resilience over reliance on public infrastructure, PTI reported.
Industry officials are of the view that the safety of financial data is very critical national infrastructure and there is a need to guard against cyberattacks, vendor lock-in and operational disruptions.
In India, RBI is creating a secure, sovereign platform for banks and payment systems much like the US Federal Reserve Bank operating highly secured facilities such as the East Rutherford Operations Center, which houses key payment and settlement infrastructure
The officials informed that other critical financial institutions such as the State Bank of India and Securities and Exchange Board of India have built or are building their own data centres.
“With financial data now treated as critical national infrastructure, the RBI’s move signals a broader policy thrust: retain tight institutional control over mission-critical systems, minimise exposure to external threats, and ensure uninterrupted functioning of the country’s financial backbone under extreme scenarios,” another analyst said.
With PTI inputs