An innovation hub is becoming crucial to strengthen customer trust by providing business continuity, and protection,  even in these times of pandemic. Thus maintaining focus on parameters like data analytics, cyber security, delivery platforms.

Furthermore,  Innovation Hubs helps in taking start-ups from idea to business. And speaking of which, Indian market is giving birth to many budding entrepreneurs who are showing significant signs of contributing to the economy of India. 

Creating an ecosystem to facilitate access to financial services and products and promote financial inclusion, Reserve Bank of India (RBI) announced the launch of its Innovation Hub on tuesday.  And, by leveraging on technology and creating an environment which would facilitate and foster innovation, RBI stated, the Reserve Bank Innovation Hub (RBIH) is meant to promote innovation across the financial sector. 

Led by a Chairperson, the RBIH would be guided and managed by a Governing Council (GC).  While the first  chairperson of the RBIH would be the central bank has appointed Infosys co-founder and former chairman Senapathy Kris.  

Currently, he is the Chief Mentor of Start-up Village, an incubation hub for start-ups. 

The setting up an innovation hub for ideation and incubation if new capabilities by RBI will deepen the financial inclusion promote efficient banking services. 

"The Innovation Hub will support, promote and hand-hold cross-thinking spanning regulatory remits and national boundaries," RBI said in its 'Statement on Developmental and Regulatory Policies'.

It added, “The Hub will act as a centre for ideation and incubation of new capabilities which can be leveraged to create innovative and viable financial products and/or services to help achieve the wider objectives of deepening financial inclusion, efficient banking services, business continuity in times of emergency, and strengthening protection, among others.”

Importance of Innovation Hub

Innovation Hub will significantly promote and handhold cross thinking spanning regulatory remits, and national boundaries and also act as the finance-related idea creation centre. Also, it will support, and carry out regulatory practices in the BFSI at the international and national level. By providing protection, and business continuity even in times of emergency situations, an innovation hub will also help to strengthen customer trust. Adding to it, it will also focus on parameters like data analytics, cyber security, delivery platforms.