The Institute for Development and Research in Banking Technology (IDRBT) is an autonomous institution established by the Reserve Bank of India (RBI) in 1996. It was set up as a society under the Societies Registration Act to serve as a center for research and development in banking technology. Since 2004, the Institute has been financially independent and operates as a unique organization dedicated solely to advancements in banking technology.
Vision and Objectives
IDRBT aims to develop robust platforms, systems, and standards to facilitate the adoption and assimilation of emerging technologies within the Indian banking sector. Over the years, the Institute has evolved into a leading center for academic research, executive education, consultancy, development of best practices, and formulation of frameworks for banking technology, infrastructure, and management.
Role in Digital Security
IDRBT also acts as a Certifying Authority for the Indian banking and financial sector. It issues digital certificates licensed by the Controller of Certifying Authorities, Government of India. These certificates are utilized by the RBI, banks, and other financial institutions to enable secure electronic communication. The digital certification ensures authenticity, integrity, non-repudiation, and confidentiality in electronic transactions.
Research Centres and Focus Areas
The Institute hosts six research centres, each encompassing multiple laboratories that explore both current and emerging technologies relevant to the financial sector. Key research domains include:
- Data Analytics and Artificial Intelligence
- Machine Learning and Cybersecurity
- Ethical Hacking and Digital Privacy
- Networks, Cloud Computing, and 5G
- Internet of Things (IoT), Mobile and Social Media Banking
- Open Source, Quantum-Safe Cryptography, and Distributed Ledger Technologies
- Quantum Communication and Digital Payments
Technological Initiatives and Services
Since its inception, IDRBT has played a pivotal role in conceptualizing and delivering key technology services for the Indian banking and financial ecosystem. Notable initiatives include:
| Service | Launch Date |
|---|---|
| INdian FInancial NETwork (INFINET) | June 19, 1999 |
| Structured Financial Messaging System (SFMS) | December 14, 2001 |
| National Financial Switch (NFS) | August 27, 2004 |
| Indian Banking Community Cloud (IBCC) | August 2, 2013 |
INFINET
The Indian Financial Network (INFINET) serves as the communication backbone of India’s banking and financial sector. Launched in June 1999, INFINET was initially established as a closed user group (CUG) using satellite communication (INSAT-3B). It has since evolved to terrestrial leased lines and now employs Multiprotocol Label Switching (MPLS) for scalable, secure, and high-speed data transmission. Today, it connects over 60,000 bank branches and plays a vital role in the country’s digital financial infrastructure.
National Financial Switch (NFS)
Initiated in 2003 and launched in 2004, the National Financial Switch (NFS) was developed by IDRBT to interconnect Automated Teller Machines (ATMs) across India into a single interoperable network. Prior to NFS, ATMs operated within isolated bank-specific networks. The NFS infrastructure later transitioned to the National Payments Corporation of India (NPCI), and the software was developed in collaboration with Tata Consultancy Services (TCS).
Structured Financial Messaging System (SFMS)
The Structured Financial Messaging System (SFMS) is India’s secure messaging standard, similar in structure and function to the global SWIFT network. Launched in December 2001, SFMS facilitates intra-bank and inter-bank applications. It underpins major payment systems such as:
- National Electronic Funds Transfer (NEFT)
- Real Time Gross Settlement (RTGS)
- Delivery versus Payment (DvP) for government securities
- Centralized Funds Management System (CFMS)
SFMS was designed and implemented by IDRBT to ensure secure, standardized financial messaging.
Real Time Gross Settlement (RTGS) and NEFT
RTGS was launched on March 26, 2004, to enable real-time, gross settlement of large-value payments. NEFT followed in November 2005, providing a reliable method for retail inter-bank fund transfers. Both systems were developed using the SFMS platform and run on the INFINET infrastructure. As of December 2020 (RTGS) and December 2019 (NEFT), both operate 24x7x365, supporting a broad array of payment services, including UPI, IMPS, ATMs, and NACH.
Indian Banking Community Cloud (IBCC)
Launched on August 2, 2013, the Indian Banking Community Cloud (IBCC) offers secure cloud infrastructure for collaborative resource sharing among banks. This initiative helps financial institutions reduce operational costs, improve service efficiency, and enhance data security.
Indian Financial Technology and Allied Services (IFTAS)
Indian Financial Technology and Allied Services (IFTAS), headquartered in Mumbai, was established as a subsidiary of IDRBT to manage and operate the core technology infrastructure originally developed by the Institute. The Director of IDRBT served as the first Chairman of IFTAS.
Effective April 1, 2016, IFTAS took over the management of INFINET, SFMS, RTGS, NEFT, and IBCC. In March 2019, IFTAS became a wholly owned subsidiary of the Reserve Bank of India. For the latest developments, readers are encouraged to visit www.iftas.in.
The IFTAS Cloud Platform offers a dedicated Community Cloud Computing environment for RBI and its subsidiaries. It delivers enterprise-grade functionality, with options for shared or dedicated infrastructure and services tailored to specific operational needs.
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