GS Paper - 3 (Economy)

RBI Governor Shaktikanta Das inaugurated the Reserve Bank Innovation Hub (RBIH) in Bengaluru, set up with an initial capital contribution of Rs 100 crore to encourage and nurture financial innovation. The Hub has an independent Board with Senapathy (Kris) Gopalakrishnan as the Chairman and other eminent persons from industry and academia as members, the central bank said.

What

  1. The RBI has set up the RBIH as a Section 8 company under Companies Act, 2013, with an initial capital contribution of Rs 100 crore to encourage and nurture financial innovation in a sustainable manner through an institutional set-up.
  2. RBIH aims to create an ecosystem that focuses on promoting access to financial services and products for the low-income population in the country.
  3. 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.
  4. The Hub would bring convergence among various stakeholders (BFSI Sector, Start-up ecosystem, Regulators and Academia) in the financial innovation space.