Shaktikanta Das: Inauguration of the Reserve Bank Innovation Hub
(RBIH)
Inaugural address by Mr Shaktikanta Das, Governor of the Reserve Bank of India, at the Reserve
Bank Innovation Hub, Bengaluru, 24 March 2022.
* * *
1. Central Banks are often viewed as traditional institutions that set monetary policies, issue
currencies and regulate and supervise the financial sector segments and entities. For every
economy to grow steadily and efficiently, this characteristic of a central bank is very important.
Being a full service central bank, the RBI also plays a developmental role and is looked upon as a
residual regulator as well.
2. RBI has been able to perform its varied roles with required professionalism and pragmatism.
The ability to combine traditional functions with innovation has been critical to ensure orderly
growth of the financial sector. To achieve specific end goals, apart from its own initiatives, the
RBI has been an institution builder and has nurtured the setting up and development of many
1
institutions like NABARD, CCIL, NPCI, IDRBT, IGIDR and ReBIT.
3. The recent phenomenon of technological innovations transforming the experience of availing
financial services, be it banking, non-banking, payment services or being part of the financial
markets has raised greater expectations from RBI to act as an innovation enabler as well. 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.
Taking into consideration the availability of skilled personnel, innovation eco-system, linkages
with academia / incubation centres etc., it was decided to set up the Hub at Bengaluru,
Karnataka.
4. 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. 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 customised products particularly relevant for those at the bottom of the pyramid. I
have no doubt that this transformative move will facilitate further innovation not just in the areas
under the remit of RBI but across the entire spectrum of financial sector in the country.
5. The RBIH is an investment for the future. The Hub is expected to build an ecosystem for
development of prototypes, patents and proofs of concept and promote cross-thinking spanning
regulatory domains and national boundaries. With its own independent Board comprising
eminent members from industry and academia, I am sure RBIH is perfectly positioned to
facilitate convergence of ideas among various stakeholders. While fostering innovation, however,
the underlying focus of RBIH should always be to promote access to financial services and
products for the low-income population in the country. It should be our duty to promote such
innovation that not only improves process efficiencies but also transforms the society. The
overall focus, I feel, should be on innovation with a purpose.
6. I am happy to hear that to begin with, the Hub has plans of identifying and mentoring start-ups
having maximum potential. I wish and hope that the Hub strives to nurture multiple indigenous
ideas in the short to medium term, each of which can positively impact one or more segments of
our financial ecosystem. The Hub is also expected to collaborate with various Government
Ministries / Departments / Academia to identify problem statements in different domains and
explore potential solutions. To become a Hub in true sense, RBIH should serve as a focal point
for interaction among various stakeholders. It should become the epicentre for promotion and
exchange of views and knowledge-sharing, while also remaining focused on delivering clear cut
objectives within reasonable timelines.
7. RBIH should aim to establish itself as a respected innovation and incubation centre, and
showcase India's commitment to openness of ideas, resolve to innovate, with underlying
concern for inclusive growth. I am confident that RBIH shall facilitate making our financial sector
more agile, participative and robust.
8. With these words, I am delighted to inaugurate the RBIH and wish it all success. The
expectations are high and the Hub will be guided by public interest. It has the potential to touch
the lives of every citizen by facilitating innovations with high social impact. The Hub, I am sure,
will emerge as a significant player in India's journey of inclusive growth.
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National Bank for Agriculture and Rural Development (NABARD); The Clearing Corporation of India Limited
(CCIL); National Payments Corporation of India (NPCI); Institute for Development and Research in Banking
Technology (IDRBT); Indira Gandhi Institute of Development Research (IGIDR); Reserve Bank Information
Technology Pvt. Ltd (ReBIT)