RBI to set up innovation hub for Financial Sector

The Reserve Bank of India has announced that it is setting up an Innovation Hub to promote innovation across the financial sector by utilizing technology for various things. It is going to act as a centre of innovation for the finance industry in the country.

The objective of the Innovation Hub

This innovation hub is going to act as a centre for generating ideas and incubation of new capabilities that can be leveraged in order to create innovative and viable financial products or services to help achieve the wider objectives of deepening the financial inclusion in the country, business continuity in terms of emergency and also strengthening consumer protection in the country.

What will this Hub do?

This innovation hub is going to support, promote and hand-hold cross-thinking across different areas so that regulatory remits and national boundaries are also considered. Areas such as data analytics, cybersecurity, delivery platforms, etc. will be in focus for this organization.

Background

Previously, the RBI had announced the concept of Regulatory Sandbox framework in the country and it was a similar concept in which Digital Payments were the first cohort. It had accepted six proposals to date, the trials and pilot studies of which have been delayed due to the COVID 19 situation.

Month: Current Affairs - August, 2020