The Reserve Bank of India has launched its Innovation Hub (RBIH), a program designed to promote access to financial services and increase financial inclusion.
First announced in August 2020 and inaugurated March 24, the RBIH 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,” the bank said in an announcement on its website.
According to the central bank, the hub is launching with an investment of $25 million (₹100 crore) to encourage “sustainable” financial innovation.
“This initiative puts RBI in an exclusive group of select global central banks that are enterprising enough to change the mode of engagement while dealing with innovation,” Shri Shaktikanta Das, the bank’s governor, said at the launch.
“It also reflects a genuine commitment to have continuous engagement with industry, innovators, academia and related stakeholders to nurture and leverage beneficial innovation in the financial sector, which can deliver customized products particularly relevant for those at the bottom of the pyramid.”
Read more: Innovation Center Launch Could Advance US Digital Currency
The New York Federal Reserve debuted its innovation hub in November of last year. In addition to supporting the central bank’s plans to launch a digital currency, the center has said it will also assist the Fed in analyzing the financial risks tied to climate change, along with financial market infrastructure and governance.
Read more: BIS To Open Four New Innovation Hubs Over Next Two Years
The Bank of International Settlements opened its first innovation hub in 2019 as a place for central banks to collaborate on projects and serve as launchpads for new public goods. Initially based in Basel, Hong Kong and Singapore, the BIS has since opened locations in London and Stockholm with plans for branches in Toronto, Frankfurt and Paris.