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    Cloud platforms

    The main cloud providers all run regions in India, so banks can keep data in the country. For a bank, cloud use is outsourcing, with rules on data, security and exit. Providers differ mostly in fit.

    Facts last verified 29 September 2026 Intermediate 3 min read Updated
    On this page
    1. Why it matters
    2. The landscape
    3. The regulatory frame
    4. How to choose
    5. Trade-offs
    6. Pitfalls
    7. Questions for a design review

    Why it matters

    Cloud platforms give banks capacity on demand, managed databases and analytics, and environments that can be created in minutes. Whether and how a bank uses them is shaped less by technology than by rules: where data may live, what counts as outsourcing and how the bank would leave. Hybrid and multi-cloud deployment covers the architecture; this page covers the providers and constraints.

    The landscape

    Major cloud providers
    ProviderRegions in India (see sources)Typical use in Indian bankingNotes
    Amazon Web ServicesMumbai, HyderabadChannel back ends, analytics, development and testingBroadest service catalogue
    Microsoft AzurePune, Chennai, MumbaiWorkloads tied to Microsoft software and identityStrong hybrid and identity tooling
    Google CloudMumbai, Delhi NCRData analytics and machine learningStrong data and analytics services
    Oracle Cloud InfrastructureMumbai, HyderabadOracle database and application workloadsNatural home for Oracle-based systems
    Indian data-centre and cloud operatorsVarious Indian citiesPrivate and community cloud, colocationLocal contracts and support

    Typical uses are general patterns, not claims about named banks. Region lists change; confirm on each provider's region page. Sources1Cloud Infrastructure Map. Cloud Infrastructure Map. As of 29 September 2026.

    As of 2026, AWS runs cloud regions in Mumbai and Hyderabad, Microsoft Azure in Pune, Chennai and Mumbai, Google Cloud in Mumbai and Delhi NCR, and Oracle Cloud in Mumbai and Hyderabad.1Cloud Infrastructure Map. Cloud Infrastructure Map. As of 29 September 2026. Having more than one region in the country lets a bank run a primary and a disaster-recovery site without moving data abroad.

    The regulatory frame

    Three rules shape almost every cloud decision:

    • Data residency. RBI's circular of 6 April 2018 requires payment system providers to store the entire data relating to their payment systems only in India; data on the foreign leg of a transaction may also be stored abroad.2Reserve Bank of India. Storage of Payment System Data (RBI/2017-18/153). As of 6 April 2018.
    • Outsourcing. RBI's IT outsourcing Direction counts cloud computing services as outsourced IT services and adds specific requirements for storing, computing and moving data in the cloud.3Reserve Bank of India. Master Direction on Outsourcing of Information Technology Services (RBI/2023-24/102). As of 10 April 2023. RBI's Direction describes cloud security as a shared responsibility between the regulated entity and the cloud service provider.3Reserve Bank of India. Master Direction on Outsourcing of Information Technology Services (RBI/2023-24/102). As of 10 April 2023.
    • Exit. A regulated entity's outsourcing policy must include termination processes and exit strategies, including business continuity if a service provider leaves the arrangement.3Reserve Bank of India. Master Direction on Outsourcing of Information Technology Services (RBI/2023-24/102). As of 10 April 2023.

    Sovereign and community cloud

    Some workloads are better served by cloud infrastructure dedicated to a sector or a country. A community cloud is shared among a defined group, such as banks of one type. IFTAS's Indian Banking Community Cloud provides core banking and other applications, such as SFMS and mobile banking, as web services.4Reserve Bank of India. Chief Executive Officer (CEO) for Indian Financial Technology and Allied Services (IFTAS). As of 20 September 2022. A sovereign cloud is operated so that data, operations and control stay within one jurisdiction. Both trade some of the public cloud’s breadth for tighter control.

    How to choose

    Most banks choose a provider per workload rather than for the whole estate. The deciding factors are usually:

    • the software the workload already depends on;
    • the services it needs, such as a managed database, analytics or AI;
    • the availability of two regions in India for resilience;
    • the bank’s existing skills and contracts;
    • how easily the workload could move elsewhere.

    Start with workloads that benefit most and carry least risk, such as development environments, analytics on masked data and customer-facing channels. Build the controls, contracts and evidence once, then reuse them.

    Trade-offs

    Cloud choices
    ChoiceYou gainYou give up
    Public cloud region in IndiaElastic capacity and managed services, data in IndiaOutsourcing obligations and provider dependence
    Provider-specific managed servicesSpeed and less to operateHarder exit
    Portable, open technologies on cloudEasier exitMore to run yourself
    Community or sovereign cloudTighter control and sector fitFewer services and less scale

    Pitfalls

    • Assuming the provider handles security. Configuration, identity and data protection remain the bank’s job.
    • Data leaving India unnoticed, through backups, logs, support access or a global service.
    • Lock-in by convenience, when a workload uses so many provider-specific services that it cannot move.
    • Cost surprises from idle resources and data transfer.
    • An exit plan written only for the auditor.

    Questions for a design review

    • In which regions will this workload’s data, backups and logs reside?
    • Which controls does the bank own, and which does the provider?
    • What provider-specific services does this workload use, and what would replace them on exit?
    • Has the outsourcing assessment been completed and approved?
    • Who owns the running cost, and how is it reviewed?

    Sources

    1. Cloud Infrastructure Map. Cloud Infrastructure Map. Analyst, accessed 29 September 2026. Supports: As of 2026, AWS runs cloud regions in Mumbai and Hyderabad, Microsoft Azure in Pune, Chennai and Mumbai, Google Cloud in Mumbai and Delhi NCR, and Oracle Cloud in Mumbai and Hyderabad (as of 29 September 2026).
    2. Storage of Payment System Data (RBI/2017-18/153). Reserve Bank of India. Primary source, accessed 29 September 2026. Supports: RBI's circular of 6 April 2018 requires payment system providers to store the entire data relating to their payment systems only in India; data on the foreign leg of a transaction may also be stored abroad (as of 6 April 2018).
    3. Master Direction on Outsourcing of Information Technology Services (RBI/2023-24/102). Reserve Bank of India. Primary source, accessed 29 September 2026. Supports: RBI's IT outsourcing Direction counts cloud computing services as outsourced IT services and adds specific requirements for storing, computing and moving data in the cloud (as of 10 April 2023); RBI's Direction describes cloud security as a shared responsibility between the regulated entity and the cloud service provider (as of 10 April 2023); A regulated entity's outsourcing policy must include termination processes and exit strategies, including business continuity if a service provider leaves the arrangement (as of 10 April 2023).
    4. Chief Executive Officer (CEO) for Indian Financial Technology and Allied Services (IFTAS). Reserve Bank of India. Primary source, accessed 29 September 2026. Supports: IFTAS's Indian Banking Community Cloud provides core banking and other applications, such as SFMS and mobile banking, as web services (as of 20 September 2022).