In order to promote and facilitate an environment that accelerates innovation across the financial sector, the Reserve Bank Innovation Hub (RBIH) has been set up as a wholly owned subsidiary of the RBI.
What is RBIH?
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.
A company is referred to as Section 8 Company when it registered as a Non-Profit Organization (NPO) i.e. when it has motive of promoting arts, commerce, education, charity, protection of environment, sports, science, research, social welfare, religion and intends to use its profits (if any) or other income for promoting these objectives.
Initial capital contribution: Rs 100 crore
Objective: To create an ecosystem that focuses on promoting access to financial services and products for the low-income population in the country.
The Hub would bring convergence among various stakeholders (BFSI Sector, Start-up ecosystem, Regulators and Academia) in the financial innovation space.
This is in line with the objective behind the establishment of RBIH i.e., to bring world-class innovation to the financial sector in India, coupled with the underlying theme of financial inclusion.”
The Hub has an independent Board with Senapathy (Kris) Gopalakrishnan as the Chairman and other eminent persons from industry and academia as members.
With its own independent board, the RBIH will facilitate convergence of ideas among various stakeholders.