India’s rapidly expanding digital banking ecosystem depends on more than mobile applications, payment platforms and internet connectivity. Behind every financial transaction is a network of computing infrastructure, data processing systems and security mechanisms that help banks and financial institutions operate reliably. Strengthening this technological foundation, the Reserve Bank of India (RBI) has established a new Data Centre and Cybersecurity Training Institute in Bhubaneswar, Odisha.
Prime Minister Shri Narendra Modi inaugurated both facilities on October 25, 2026, marking an important development in India’s financial infrastructure and cybersecurity preparedness. The new facilities are expected to strengthen the technological capabilities of RBI, support critical banking operations and build specialized expertise to address emerging cyber threats.
The development comes at a time when digital banking, real-time payments and technology-driven financial services are becoming increasingly important to India’s economy. It also highlights the growing need for resilient data infrastructure and stronger cybersecurity capabilities as financial institutions navigate an evolving digital environment.
Inside RBI’s New Data Centre: The Technology Behind the Infrastructure
A Data Centre is essentially a specialized facility that houses computer servers, storage systems, networking equipment and supporting infrastructure required to process, store and manage large volumes of digital information.
For a central bank such as RBI, these facilities play an important role in supporting critical financial applications, banking operations and payment systems. They require reliable power supplies, cooling systems, network connectivity, physical security and advanced data protection mechanisms to maintain operational stability.
RBI’s newly established Bhubaneswar Data Centre adds another important facility to the central bank’s technology infrastructure. The facility has received Tier IV accreditation from the Uptime Institute, a classification associated with highly resilient Data Centre infrastructure and fault-tolerant design.
The facility is also significant because it expands RBI’s geographical distribution of computing infrastructure. By establishing another major Data Centre outside Maharashtra, the central bank is strengthening the geographical diversity of its technology operations.
This is particularly important for financial institutions, where disruptions caused by technical failures, natural disasters or other unforeseen events can affect critical services.
The campus is spread across 18.55 acres at Info Valley-II in Jatni, near Bhubaneswar, and the project involved an investment of approximately ₹169 crore. The foundation stone was laid in March 2023 by the then RBI Governor Shri Shaktikanta Das.
One of the notable features is the facility’s four independent Data Centres. This arrangement is intended to improve infrastructure resilience by providing additional capacity and reducing the risk of disruptions affecting critical operations.
Unlike organizations that depend on third-party cloud service providers for their computing infrastructure, RBI Governor Shri Sanjay Malhotra said the central bank operates its own Data Centre infrastructure. This sovereign approach gives RBI greater control over its technology environment, data management and operational requirements.
The Digital Backbone Behind India’s Banking Operations
India’s digital banking ecosystem processes a massive volume of financial transactions every day. Behind these transactions are payment networks and settlement systems that enable money to move between individuals, businesses, banks and government institutions.
RBI’s new Data Centre will host several mission-critical applications, including the National Electronic Funds Transfer (NEFT) and Real Time Gross Settlement (RTGS) systems. Both payment systems operate round the clock and play an important role in India’s banking infrastructure. Understanding their functions helps explain why the new facility matters.
National Electronic Funds Transfer (NEFT)
NEFT enables individuals and businesses to transfer money electronically from one bank account to another. It operates on a 24×7 basis and uses a centralized payment system for processing transactions in batches. It is widely used for routine financial transfers, including payments to individuals, vendors and businesses.
Real Time Gross Settlement (RTGS)
RTGS is designed primarily for high-value fund transfers, with transactions settled individually and continuously in real time. Unlike systems that process payments in batches, RTGS settles each transaction separately without netting it against another transaction.
It is particularly important for large-value payments between banks, businesses and other financial institutions.
What about UPI transactions?
The Unified Payments Interface (UPI) operated by the National Payments Corporation of India (NPCI) has transformed how individuals make everyday digital payments. However, its relationship with RBI’s infrastructure is also worth understanding.
According to RBI Governor Shri Sanjay Malhotra, although NPCI operates UPI, the final settlement of UPI transactions takes place through RBI’s Data Centres and applications. This illustrates how different institutions and technology platforms work together to support India’s digital payment ecosystem.
Beyond payment systems, the new facility will also support the e-Kuber platform, which RBI uses for banking operations involving the Central Government, state governments and banks. Other applications, including those related to regulatory licences, approvals and RBI’s Integrated Ombudsman Scheme will also be hosted on the infrastructure.
The availability of reliable computing infrastructure is important for these operations because delays or disruptions can affect financial transactions, government banking activities and services offered by regulated entities.
The new Data Centre is therefore expected to improve the availability of critical systems, reduce downtime and strengthen the resilience of India’s financial infrastructure.
Securing India’s Digital Financial Infrastructure
As banking services become increasingly digital, cybersecurity has emerged as a major concern for financial institutions. The expansion of online transactions, mobile banking, digital lending and interconnected payment systems has also increased the importance of protecting sensitive financial information and critical infrastructure.
Cyber threats can take several forms, including phishing attacks, ransomware, identity theft, data breaches and attempts to disrupt banking networks. Such incidents can affect not only individual customers but also the operational continuity and reputation of financial institutions.
The growing use of artificial intelligence is adding another dimension to this challenge. While AI can help banks improve fraud detection, monitor suspicious transactions and strengthen security systems, it can also be misused to develop sophisticated phishing campaigns, impersonate individuals and automate cyberattacks.
This makes cybersecurity preparedness an ongoing requirement rather than a one-time technology investment.
Financial institutions need trained professionals who can identify emerging threats, understand vulnerabilities, respond to security incidents and adapt to rapidly changing technologies.
Recognizing this requirement, RBI has established a dedicated Cybersecurity Training Institute alongside its new Data Centre in Bhubaneswar.
Inside RBI’s New Cybersecurity Training Institute
The new institute is intended to strengthen cybersecurity capabilities across India’s financial sector by providing specialized training and promoting research into emerging technologies. Its importance extends beyond RBI itself.
According to the RBI Governor, the institute will train personnel from the central bank, commercial banks and other financial-sector organizations.
Its areas of focus will include:
- Artificial Intelligence (AI): Understanding emerging AI applications and their implications for financial security.
- Big Data Analytics: Developing capabilities to analyze large volumes of information and identify patterns that could indicate suspicious activities.
- Quantum Technology: Understanding developments in quantum computing and their potential implications for future encryption and cybersecurity systems.
- Blockchain: Exploring distributed ledger technology and its applications in financial systems.
The institute will also undertake research aimed at making financial systems more secure and efficient.
An important aspect of this initiative is the emphasis on developing human capabilities alongside technological infrastructure. Advanced security systems are only as effective as the people responsible for managing, monitoring and responding to potential threats.
By training professionals across the banking and financial services ecosystem, the institute could help strengthen sector-wide preparedness against emerging cyber risks.
The Prime Minister also highlighted this requirement during the inauguration. He observed that economic security is increasingly linked to cybersecurity and stressed the need to protect India’s banking system from cybercriminals and cyber terrorists.
His remarks underline the importance of building institutional capabilities to safeguard the country’s growing digital financial ecosystem.
Geographical Diversity: An Important Layer of Financial Resilience
The location of RBI’s new Data Centre is significant from an infrastructure and operational resilience perspective.
Before establishing the Bhubaneswar facility, RBI had three Data Centres located in Maharashtra. The addition of a facility in Odisha provides geographical separation between its major computing infrastructure locations.
This distribution is important because concentrating critical infrastructure in one geographical region can expose multiple facilities to similar risks arising from natural disasters, power disruptions or other localized events.
According to Governor Shri Sanjay Malhotra, Bhubaneswar was selected partly because it is geographically distant from the existing facilities and lies in a different seismic zone. This provides an additional layer of protection against regional disruptions. The availability of technical talent in the region was another consideration.
Geographical distribution is an important element of disaster recovery and business continuity planning. If one location experiences an unexpected disruption, infrastructure at another location can help support the continuity of critical operations, depending on the systems’ configuration and recovery arrangements.
The Bhubaneswar facility therefore represents more than an expansion of RBI’s computing capacity. It is also part of a broader effort to build a geographically diversified and resilient financial technology infrastructure.
A New Chapter in India’s Financial Infrastructure
Prime Minister Shri Narendra Modi inaugurated the RBI Data Centre and Cybersecurity Training Institute on 25th October, 2026, highlighting their importance in strengthening India’s digital infrastructure and financial security.
During the inauguration, the Prime Minister noted that while the previous decade focused on extending banking services to previously underserved sections of society, the coming decade would require making banking more efficient and reliable.
He also highlighted the role of digital banking in expanding financial inclusion, citing nearly 60 crore Jan Dhan accounts and the increasing accessibility of formal banking services across the country.
The Prime Minister emphasized that as India grows economically stronger, protecting its banking system against cyber threats must become a priority. He also highlighted Odisha’s emerging opportunities in sectors such as semiconductors, electronics, Data Centres and advanced computing.
The inauguration brings together two increasingly important aspects of India’s financial development: reliable digital infrastructure and specialized cybersecurity capabilities.
As financial services become more dependent on technology, the ability to maintain secure, resilient and efficient systems will remain central to the banking sector’s growth.
RBI’s new facilities in Bhubaneswar represent an important step in that direction, combining infrastructure expansion with investment in technological expertise and cybersecurity preparedness.
