This page provides AWS financial institution customers with information about the legal and regulatory requirements in India that may apply to their use of AWS services.
Regulations
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Can financial institutions use AWS?
Yes. Financial institutions in India are permitted to use cloud services, provided that they comply with applicable legal and regulatory requirements, such as those described below.
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Who are the financial regulators?
The Reserve Bank of India (RBI) supervises the financial sector in India, comprising commercial banks, financial institutions, and non-banking finance companies (such as payment systems). The RBI performs financial supervision under the guidance of the Board for Financial Supervision (BFS).
The Insurance Regulatory and Development Authority of India (IRDAI) regulates the insurance industry in India, including life insurance companies, non-life insurance companies, and insurance web aggregators.
The Securities and Exchange Board of India (SEBI) regulates the securities market, including mutual funds, depositories, stock exchanges, and commodity exchanges.
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What regulations apply to financial institutions using AWS?
Financial institutions in India may be subject to a number of different legal and regulatory requirements when they use cloud services. Regulations issued by RBI, IRDAI, and SEBI, together with relevant guidelines, provide a framework for financial institutions in India when they are planning to use cloud services. Key legislation and guidelines include the following:
- Master Direction on Information Technology Governance, Risk, Controls and Assurance Practices (2023)
- Master Direction on Outsourcing of Information Technology Services (2023)
- Cyber Security Framework in Banks (2016)
- Guidelines on Information Security, Electronic Banking, Technology Risk Management and Cyber Frauds (2011)
- Guidelines on Managing Risks and Code of Conduct in Outsourcing of Financial Services by Banks (2006)
- Master Directions on Cyber Resilience and Digital Payment Security Controls for non-bank Payment System Operators (2024)
- Framework for Outsourcing of Payment and Settlement-related Activities by Payment System Operators (2021)
- Guidelines on Regulation of Payment Aggregators and Payment Gateways (2020)
- Master Direction on Digital Payment Security Controls (2020)
- IRDAI Information and Cyber Security Guidelines (2023)
- Insurance Regulatory and Development Authority of India (Outsourcing of Activities by Indian Insurers) Regulations (2017)
- Cybersecurity and Cyber Resilience Framework (CSCRF) for SEBI Regulated Entities (REs) (2024)
- Framework for Adoption of Cloud Services by SEBI Regulated Entities (REs) (2023)
- Circular on Outsourcing of activities by Stock Exchanges and Clearing Corporations (2017)
- Guidelines on Outsourcing of Activities by Intermediaries (2011)
The above framework generally covers a variety of contractual and operational areas, including due diligence, risk management, business continuity, and monitoring and oversight.
Customers that have questions about the applicable regulations, and how these may apply to their use of AWS services, can reach out to their account representative.
Regulations are changing rapidly in this space, and AWS is working to help customers proactively respond to new rules and guidelines. AWS encourages its financial institutions customers to obtain appropriate advice on their compliance with all regulatory and legal requirements that are relevant to their business, including other local regulations, guidelines and laws.
- Master Direction on Information Technology Governance, Risk, Controls and Assurance Practices (2023)
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Key considerations for financial institutions using AWS
AWS is committed to offering customers a strong compliance framework and advanced tools and security measures that customers can use to evaluate meet, and demonstrate compliance with applicable legal and regulatory requirements.
Financial institutions who are using or planning to use AWS services can take the following steps to better understand their compliance needs:
1. Consider the purpose of the workload(s) under consideration and the relevant categories of data in order to anticipate which legal and regulatory requirements may apply.
2. Assess the materiality or criticality of the relevant workload(s) in light of local requirements. For example, banks regulated by the RBI are required to report to RBI significant outsourcing activities, and insurance companies regulated by IRDAI are required to report outsourcing arrangements where the annual payout is INR One Crore or more.
3. Review the AWS Shared Responsibility Model and map AWS responsibilities and customer responsibilities according to each AWS service that will be used. Customers can also use AWS Artifact to access AWS’s audit reports and conduct their assessment of the control responsibilities.
4. Customers who have further questions about how AWS services can enable their security and compliance needs, or who would like more information, can contact their account representative.
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Key data privacy and protection considerations for financial institutions using AWS
Financial institutions in India using AWS services should also consider applicable privacy requirements, including the India Digital Personal Data Protection Act (DPDPA). Refer to the Security and Compliance page for India for more details.
The AWS whitepaper Using AWS in the Context of Common Privacy and Data Protection Considerations provides useful information to customers using AWS cloud services to store or process personal data.
If customers process or are planning to process the personal data of data subjects in the European Union (EU), they should visit AWS’s General Data Protection Regulation (GDPR) Center. More information on these requirements is included in Navigating GDPR Compliance on AWS.
Resources
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Country-specific
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General
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Compliance Programs
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Country-specific
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Resources available through AWS Artifact
The following resources are available for download through AWS Artifact. Please note that an AWS account will be required to access AWS Artifact.
Public resourcesAWS Executive Overview for Banks in IndiaThe User Guide examines the RBI Guidelines on Managing Risks and Code of Conduct in Outsourcing of Financial Services by Banks and Guidelines on Information Security, Electronic Banking, Technology Risk Management and Cyber Frauds. It provides information that will help banks conduct their due diligence and implement an appropriate information security, risk management and governance program for their use of AWS.
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General
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Payment Card Industry Data Security Standard (PCI DSS) on AWSUsing AWS in the Context of Common Privacy and Data Protection Considerations
This guide provides customers with information to be able to plan for and document the Payment Card Industry Data Security Standard (PCI DSS) compliance of their AWS workloads. This includes the selection of controls that meet specific PCI DSS requirements, planning of evidence gathering to meet assessment testing procedures, and explaining their control implementation to their PCI Qualified Security Assessor (QSA).
AWS Compliance Quick Reference GuideThis document provides information to assist customers who want to use AWS to store or process content containing personal data, in the context of common privacy and data protection considerations. It will help customers understand the way AWS services operate, including how customers can address security and encrypt their content. The geographic locations where customers can choose to store content and other relevant considerations. The respective roles the customer and AWS each play in managing and securing content stored on AWS services.
AWS Operational ResilienceAWS has many compliance-enabling features that you can use for your regulated workloads in the AWS cloud. These features allow you to achieve a higher level of security at scale. Cloud-based compliance offers a lower cost of entry, easier operations, and improved agility by providing more oversight, security control, and central automation.
Data Classification and Secure Cloud AdoptionThe purpose of this paper is to describe how AWS and our customers in the financial services industry achieve operational resilience using AWS services.
AWS Policy Perspectives: Data ResidencyThis paper provides insight into classification schemes for public and private organizations to leverage when moving data to the cloud. It identifies practices and models currently implemented by global first movers and early adopters, examines how implementation of these schemes can simplify cloud adoption, and recommends practices to harmonize national requirements to internationally recognized standards and frameworks.
AWS Risk and ComplianceThis paper addresses: The real and perceived security risks expressed by governments when they demand in-country data residency. Commercial, public sector, and economic impact of in-country data residency policies with a focus on government data. Considerations for governments to evaluate before enforcing requirements that can unintentionally limit public sector digital transformation goals leading to increased cybersecurity risk.
AWS Security Audit GuidelinesThis document is intended to provide information to assist AWS customers with integrating AWS into their existing control framework supporting their IT environment. This document includes a basic approach to evaluating AWS controls and provides information to assist customers with integrating control environments. This document also addresses AWS-specific information around general cloud computing compliance questions.
Guidelines for systematically reviewing and monitoring your AWS resources for security best practices.
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Compliance Programs
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CSA
ISO 27018
ISO 9001
GDPR
ISO 27001
PCI DSS Level 1
ISO 27017
SOC
We are continually adapting to evolving regulations. Check often for updates.
