New Delhi/Bhubaneswar: The Reserve Bank of India (RBI) has operationalised a high-security Tier-IV data centre near Bhubaneswar in Odisha to strengthen the cyber and operational resilience of the country’s financial system, ensuring uninterrupted functioning of mission-critical banking and payment infrastructure even during emergencies.
Developed over about 18.55 acres as a greenfield project, the facility houses the RBI’s core computing systems that handle currency management, payment and settlement operations, and regulatory data processing. It will function as a back-up and disaster recovery centre for the national financial network.
Strategic location prioritised
The choice of location is being viewed as a key security decision. Situated away from the country’s western and northern borders and outside high seismic zones, the site is expected to reduce risks arising from natural disasters or external threats. Its relatively lower internet traffic profile is also seen as a factor that could mitigate network congestion and certain categories of cyber risk.
Financial sector experts note that geographical diversification of data infrastructure is critical for systemic stability. Dependence on a single city or region increases operational vulnerability, whereas distributed facilities ensure continuity of services in the event of disruptions.
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Significance of Tier-IV standard
Tier-IV data centres represent the highest benchmark of reliability, featuring fault-tolerant design, full redundancy and the ability to deliver up to 99.995% system availability. This means that even if one component fails, the overall system continues to operate without affecting core services.
The RBI’s primary data centre is already operational at Kharghar in Navi Mumbai. The Bhubaneswar facility will serve as the secondary site and can assume full operational responsibility if required.
Responding to surge in digital transactions
The move comes amid rapid growth in real-time digital payments and electronic transactions, which has increased the need for secure and continuous data processing infrastructure. Financial data is now treated as a critical national asset, requiring protection against cyber attacks, technical failures and physical risks.
Experts say that developing and controlling its own data centre reduces dependence on external service providers and gives the central bank tighter control over sensitive financial information.
Aligned with global central banking practices
Several central banks worldwide are building independent, highly secure data facilities to ensure uninterrupted operation of payment systems and financial markets. Layered physical and cyber security, multi-site architecture and automated back-ups have become standard practices.
In India, too, banks and regulators are investing in strengthening data infrastructure, with local cloud facilities and disaster recovery sites emerging as key components of financial stability planning.
Built for future digital banking needs
The new facility is not merely a back-up system but has been designed with future digital banking requirements in mind. Its scalable architecture is intended to handle rising data volumes, advanced analytics and real-time supervisory monitoring.
Sector specialists believe such infrastructure will play a crucial role in maintaining financial stability amid cyber risks, operational disruptions and geopolitical uncertainties.
The RBI’s latest initiative signals that safeguarding mission-critical financial systems and ensuring service continuity has become a policy priority as India’s digital economy expands.
