The Reserve Bank of India (RBI) has initiated a project to construct a state-of-the-art greenfield next-generation data centre. This ambitious project aims to address capacity constraints, meet the expanding needs of the IT landscape, and mitigate region-specific risks. The new data centre is scheduled to commence operations in the fiscal year 2024-25 (FY25).
Key Highlights:
Purpose and Benefits:
- Capacity Expansion: The new data centre is designed to alleviate capacity constraints and support the growing IT demands of the RBI and its subsidiaries.
- Risk Mitigation: By establishing a greenfield site, the RBI aims to reduce region-specific risks and ensure a more resilient and secure data infrastructure.
- Internal Support: The data centre will cater to the internal needs of the RBI, enhancing its operational efficiency and technological capabilities.
Technological Upgrades:
- INFINET 3.0: As part of its broader IT strategy, the RBI is also working on upgrading the Indian Financial Network (INFINET 3.0) with advanced technology, increased bandwidth, and improved services.
- Closed User Group (CUG): INFINET is a closed user group network exclusively used by member banks and financial institutions.
- Critical Applications: The network supports critical payment system applications, including Real-Time Gross Settlement (RTGS), National Electronic Fund Transfer (NEFT), and e-Kuber.
Currency in Circulation:
Dominance of Rs 500 Note:
- Increased Share: The Rs 500 note has become the dominant denomination in circulation, representing 86.5% of the total currency in value as of March 31, 2024, up from 77.1% in March 2023.
- Decline of Rs 2000 Note: The rise in the share of the Rs 500 note is attributed to the significant decline in the Rs 2000 note, which accounted for only 0.2% of the currency in circulation by the end of FY23.
Overall Currency Trends:
- Increase in Circulation: During 2023-24, the value and volume of banknotes in circulation rose by 3.9% and 7.8%, respectively. This is compared to a 7.8% increase in value and a 4.4% increase in volume during 2022-23.
- Total Currency in Circulation: As of March 31, 2024, the total currency in circulation stood at Rs 34.8 trillion, an increase of approximately Rs 10 trillion over the last five years from Rs 24.21 trillion in March 2020.
Conclusion:
The establishment of the RBI’s next-generation data centre marks a significant milestone in enhancing the technological infrastructure and operational resilience of India’s central banking system. Coupled with the upgrade of INFINET 3.0, these initiatives underscore the RBI’s commitment to advancing its IT capabilities and supporting the nation’s financial stability. Meanwhile, the shifting dynamics in currency circulation, particularly the dominance of the Rs 500 note, reflect broader trends in India’s monetary landscape.
Login with Google