India’s public sector banks are preparing to adopt a Global Capability Centre (GCC) strategy beginning FY27 as part of their broader technology and operational transformation efforts, according to a report citing sources.
The initiative follows the move by State Bank of India, which established the first GCC among state-owned banks earlier this year and is expected to play a key role in guiding the wider rollout across the sector.
Alongside the GCC strategy, public sector banks are evaluating the adoption of active-active data centre models. These could potentially be included in their next 5-year business strategies to strengthen operational resilience and technology infrastructure.
A bank executive was quoted as saying: “Some of these initiatives will be pursued as part of the latest reforms agenda. Banks will also look at combining strengths to offer complete banking solutions, including blockchain technology, advanced risk assessment and fraud detection models.”
The developments are aligned with the EASE 9.0 reform framework, which aims to modernise public sector banks through stronger governance, improved technology adoption and enhanced risk management practices.
As part of the reform programme, banks are preparing to build core AI infrastructure. This includes plans to license large language models (LLMs), develop GPU strategies and deploy private cloud systems to support future digital operations.
In January, SBI announced that its GCC would function as a central hub to provide banking services to similar centres located in the Indian state of Karnataka.
These reforms are being driven by the Department of Financial Services to streamline operational processes and raise performance standards across state-run lenders.
Another bank executive said: “Some of these initiatives were also discussed during PSB Manthan held last year. The idea is to prepare PSBs to leverage technology and improve productivity and scale through new business models.”
Under EASE 9.0, public sector banks will also strengthen their consent management frameworks and expand the use of data tokenisation and anonymisation technologies to improve data protection and governance.
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