RBI is setting up the Reserve Bank Innovation Hub to promote innovation across the financial sector by leveraging technology and creating an environment that would facilitate and foster innovation. RBI has appointed the Chairperson and some of the other members of the Governing Council of the innovation hub. RBI had announced, in August 2020, that it will set up the innovation hub. With regard to the first cohort on retail payments under the regulatory sandbox, RBI notified that it received applications from 32 entities, of which six have been selected for the test phase. The commencement of testing was delayed on account of the COVID-19 situation.
Two entities have started testing their products from November 16, 2020. The remaining four are expected to start the test phase shortly, which will be communicated as and when they do so. The Reserve Bank Innovation Hub shall create an ecosystem that would focus on promoting access to financial services and products. This will also promote financial inclusion. The innovation hub will collaborate with financial sector institutions, technology industry and academic institutions and coordinate efforts for exchange of ideas and development of prototypes related to financial innovations. It would develop internal infrastructure to promote fintech research and facilitate engagement with innovators and startups.
Keywords: Asia Pacific, India, Banking, Insurance, Securities, Innovation Hub, Regulatory Sandbox, Fintech, Financial Inclusion, Regtech, RBI
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