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
Previous ArticleBaFin Consults on Revisions to Requirements for Implementing Bail-In
The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.
The European Council and the European Parliament (EP) reached a provisional political agreement on the Corporate Sustainability Reporting Directive (CSRD).
The Prudential Regulation Authority (PRA) launched a consultation (CP6/22) that sets out proposal for a new Supervisory Statement on expectations for management of model risk by banks.
The European Commission (EC) published the Delegated Regulation 2022/954, which amends regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.
The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.
The European Insurance and Occupational Pensions Authority (EIOPA) published two consultation papers—one on the supervisory statement on exclusions related to systemic events and the other on the supervisory statement on the management of non-affirmative cyber exposures.
Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)
The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.
The Prudential Regulation Authority (PRA) issued a statement on PRA buffer adjustment while the Bank of England (BoE) published a notice on the statistical reporting requirements for banks.
The Basel Committee on Banking Supervision (BCBS) issued principles for the effective management and supervision of climate-related financial risks.