National Digital Financial Infrastructure (NADI)

• 19 May 2021

The Institute for Development and Research in Banking Technology (IDRBT), an arm of Reserve Bank of India (RBI), is building next generation Digital Financial Infrastructure.

• This high speed network to be owned by the Government of India with which the government can monitor and control all financial activity and security becomes easy.
• The National Digital Financial Infrastructure (NADI) would provide a roadmap and framework for future digital financial services growth in the country.
• The NADI will consist of modern network infrastructure which includes 5G/Edge Cloud with SDNs (software defined networking) for connecting to the critical data centre infrastructure at the back-end.
• This will have the ability to separate financial network traffic from other traffic with clear entry points for protecting the network from outside elements and ability to quickly isolate the network in the event of counter-attacks.
• It will also have the middle ware infrastructure for supporting both digital identity verification, digital identity assessment and digital asset management with the support of efficient digital ledger technologies and AI/ML technologies.
• It will also provide for development and deployment of financial applications by banks and other financial institutions.