Reserve Bank of India Launched “Innovation Hub” for ideation and incubation of new capabilities that can be leveraged to deepen financial inclusion.
What is the Innovation Hub?
It will help in the ideation and incubation of new capabilities. The Innovation hub promotes startups in India. This can also help to deepen financial inclusion in the country and promote efficient banking services.
Benefits of the Innovation Hub :
To help achieve efficient banking.
Business continuity in times of emergency.
Strengthening consumer protection.
Reserve Bank of India recently taken similar initiatives to encourage responsible innovation. For example “Regulatory Sandbox”.
Regulatory Sandbox :
Refers to live to test new products and services in a controlled environment. This framework is useful to boost financial technology startups. That will look to innovate. An important point in this sandbox is to foster responsible innovation in financial services.
The minimum net worth of Rs 25 lakh. The entity should either be a company registered in the country or banks licensed to operate in India.
- 1 trillion USD worth Small and Medium Enterprise (SME) will be digitally disbursed by 2029.
- The Indian Fintech ecosystem attracts 6 billion USD investment globally since 2014.
- The Fintech companies use technologies to provide payments, crowdfunding, peer-to-peer landing.