IDRBT - The Institute

Formation

       The foundation for induction of Information Technology in the Indian Banking and Financial Sector was laid by Dr. Rangarajan Committee’s two reports in the years 1984 and 1989, which strongly recommended computerisation of banking operations at various levels. In this context, a need was felt for an Apex-level Institute, which would be the Brain Trust for adoption and absorption of technology in BFSI sector. In the year 1994, a committee under the Chairmanship of Shri W. S. Saraf, Executive Director, Reserve Bank of India, was constituted. The Committee, inter alia recommended that RBI may set up Institute for Development, Research, training, consultancy for application of technology in BFSI sector.  This recommendation fructified in establishment of the Institute for Development and Research in Banking Technology [IDRBT] in March 1996 as a Society under Society Registration Act. The Institute became financially independent since 2004.

         The aims and objectives of IDRBT is governed by the Governing Council (GC) and is the apex policy making body at IDRBT. Shri N. S. Vishwanathan, Ex. Deputy Governor, Reserve Bank of India is the Non-Executive Chairman.

The Journey of IDRBT

         Indian Financial Network (INFINET) was planned as a closed user group, for secure reliable and sustainable high speed Network for banks. In June 1999, INFINET was launched as a closed user group (CUG) private network with Dish Antenna- INSAT- 3B, upgraded to Terrestrial Leased Lines and further to as Multiprotocol Label Switching (MPLS) for a scalable and protocol-independent technique. MPLS helps to boost the speed of network traffic amongst CUG under encrypted environment. Over the period, INFINET has efficiently functioned as backbone of digital financial infrastructure in banking sector.

         Structured Financial Messaging System (SFMS) was launched on December 14, 2001 as a secure messaging standard developed to serve as a platform for intra-bank and inter-bank applications. SFMS is used by applications like National Electronic Funds Transfer (NEFT), Real Time Gross Settlement Systems (RTGS), Delivery versus Payments (DvP) for Government securities, Centralised Funds Management Systems (CFMS) for Government besides other applications of our payment system.

         In August 2003, IDRBT initiated creation of the National Financial Switch (NFS), aimed at linking all the Automated Teller Machines (ATMs) across the country into a unified, interoperable network. At the time, ATMs operated in isolated networks specific to individual banks. IDRBT launched the NFS in August 2004, connecting the ATMs of three banks, to start with which increased to 49,880 ATMs of various banks in December 2009.

  • IDRBT hived off its operational role on NFS for ATMs network to National Payments Corporation of India (NPCI) on ‘as is where is basis’ in October 2009 For further expansion. The handover facilitated the continued growth and development of the NFS network which as on July 31, 2024 connects to 2.61 Lakhs ATM of 1,317 member banks.

         RTGS was launched on March 26, 2004 as a secure electronic fund transfer system that provides real-time settlement for transactions on one-to-one gross basis. Thereafter NEFT, a secure, reliable, and efficient way for inter-bank/inter-branch online fund transfer was launched in November 2005. Both RTGS and NEFT were developed at IDRBT using the SFMS and INFINET infrastructure. RTGS (since Dec 2020) and NEFT (since Dec 2019) runs on 24×365 basis. Today, both the systems put together facilitate all types of payment system – to name a few UPI, IMPS, ATM, NACH, etc., is used for all types of inter-bank fund transfers.

         Indian Banking Community Cloud (IBCC) was unveiled on August 2, 2013, as a secure cloud infrastructure that fosters collaboration and resource sharing amongst banks, further fortifying the financial ecosystem.

  • IDRBT hived off the system and infrastructure for INFINET, SFMS, RTGS, NEFT and IBCC to its subsidiary IFTAS in February 2015, which was subsequently transferred to RBI in 2019.

         IDRBT is the certifying authority (CA) for the Indian banking and financial sector, under IT Act 2000. The digital certificates being issued by IDRBT are used by the RBI, banks and other financial institutions to exchange electronic messages between banks ensuring authenticity, integrity, non-repudiation and confidentiality.

Development and Research

         IDRBT through its applied Research attempt to develop appropriate platform/system/ standard for adoption and absorption of emerging technologies for digital transformation of the banking industry. These efforts had brought operational ease, efficiency and better experience for customers. Over the period, IDRBT has also evolved as a prime center for Academics, Executive Education, Best practices, Consultancy, Development of standards, frameworks, etc., to the Banking and Financial Sector on Technology, Technology Infrastructure, Technology Management and related areas.

         The Institute has 6 Research Centres with associated state-of-the-art labs focusing on experiments in areas such as Analytics, Artificial Intelligence, Machine Learning, Cyber Security, Ethical Hacking, Digital Privacy, Networks, Cloud Computing, 5G, Internet of Things, Mobile and Social Media Banking, Banking Use Case Innovation, Open Source, Quantum Safe Cryptography, Quantum Communications, Distributed Ledger Technologies and Digital Payments.

         Training and education programs form an inherent part of IDRBT’s initiatives in aiding emerging technology absorption in the banking and financial sector. The institute’s programs are structured to prepare the top and middle-level management of Banks and other Financial Institutions. The institute has collaborations with premiere Institutions such as IITs, NITs, University of Hyderabad and adding more for Ph.D. and M.Tech.(IT) programs with IDRBT Fellowship. The institute publishes its Journal of Banking and Financial Technology (JBFT) through Springer.

Group and Forum

         IDRBT has formed Forum for Chief Information Security Officers (CISO) as early as 2010 and thereafter Chief Information Officers (CIO) Forum (2015), Chief Analytics Officers (CAO) Forum (CAO) (2016) and recently the FinTech Forum.

         In order to meet the ICT industry and banking sector demand, the IDRBT launched the Post Graduate Diploma in Banking Technology (PGDBT) in July 2016. It is a unique programme designed to provide a pool of talented professionals with technology expertise to support their technology deployment initiatives and efficient operation and maintenance.

      The PGDBT is a full-time regular one-year programme that provides essential learning inputs on technology implementation, integration and management to enable the candidates to meet the changing technology requirements in the country for specific focus on BFSI sector.