The traditional banking Industry has not matched the pace of other industries and is looked at as a slow-moving sector when it comes to innovation. But the disruptive technological developments and new policies and regulations are pushing banks to be more transparent, open, collaborative, secure, and innovative.
In this line, Reserve Bank of India (RBI), India’s central bank and regulatory body responsible for the regulation of the Indian banking system, has started an innovation hub in Bengaluru. The aim is to bring convergence among various stakeholders in the financial innovation space.
Inaugurated by RBI Governer Shri Shaktikanta Das the hub was set up earlier this year with an initial capital contribution of ₹100 crores. The RBIH will work to create an ecosystem that would help BFSI Sector, Start-up ecosystem, Regulators & Academia. The focus will be on promoting access to financial services and products for the low-income population in the country.
The Hub will encourage and nurture financial innovation and bring ‘world-class’ innovation to the financial sector in India, coupled with the underlying theme of financial inclusion.
The Hub has an independent Board and will be guided and managed by a Governing Council (GC) led by a Chairperson. The Reserve Bank has appointed Shri Senapathy (Kris) Gopalakrishnan, co-founder and former co-Chairman, Infosys, as the first Chairperson.
The Hub will collaborate with financial sector institutions, the technology industry, and academic institutions and coordinate efforts for the exchange of ideas and development of prototypes related to financial innovations. It also would develop internal infrastructure to promote fintech research and facilitate engagement with innovators and start-ups.
The government of India has asked state-run banks to explore collaboration with startups and fintech and promote innovative products. Banks world over are collaborating with startups to overcome challenges and harness innovation to accelerate inclusive finance, scale their technology, and improve access to capital.
With this in Background, RBIH aims to provide a platform for all financial ecosystem stakeholders and aid them in formulating forward-looking innovation strategies while identifying challenges in the Indian financial system and addressing them through research and consultation.
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