Reserve Bank of India (RBI) governor Shaktikanta Das on Thursday inaugurated the Reserve Bank Innovation Hub (RBIH) in Bengaluru which is intended to encourage and nurture financial innovation in a sustainable manner through an institutional set-up.
The RBI has set up RBIH as a wholly owned subsidiary with an initial capital contribution of ₹100 crore.
The Hub has an independent Board with S. Gopalakrishnan as Chairman and other persons from industry and academia as members.
“RBIH aims to create an ecosystem that focusses on promoting access to financial services and products for the low-income population in the country,” the RBI said.
“This is in line with the objective behind establishment of RBIH i.e., to bring world-class innovation to the financial sector in India, coupled with the underlying theme of financial inclusion,” it added.
The Hub would bring convergence among stakeholders - BFSI Sector, Start-up ecosystem, Regulators & Academia - in the financial innovation space, it said.
Mr. Das added: “This initiative puts RBI in an exclusive group of select global central banks that are enterprising enough to change the mode of engagement while dealing with innovation.”
“The RBIH is an investment for the future. The Hub is expected to build an ecosystem for development of prototypes, patents and proofs of concept and promote cross-thinking, spanning regulatory domains and national boundaries,” Mr. Das said.
He said the Hub had plans to identify and mentor start-ups having maximum potential.
The Hub is also expected to collaborate with various government Ministries, Departments and academia to identify problem statements in different domains and explore potential solutions, he added.
The RBIH should aim to establish itself as a respected innovation and incubation centre, and showcase India’s commitment to openness to ideas, resolve to innovate, with underlying concern for inclusive growth, he said.