RBI Governor inaugurates the Reserve Bank Innovation Hub (RBIH)

26 Mar,22 9:22 am
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Reserve Bank Innovation Hub (RBIH): The Governor, Reserve Bank of India (RBI), Shri Shaktikanta Das inaugurated the Reserve Bank Innovation Hub (RBIH) onMarch 24, 2022 in Bengaluru.

Key Points:

  • The RBI has set up the RBIH as a Section 8 company under the Companies Act, 2013.
  • The hub has been set up with an initial capital contribution of Rs 100 crore to encourage and nurture financial innovation.
  • The new unit has an independent board with Shri Senapathy (Kris) Gopalakrishnan as Chairman and other eminent persons from industry and academia as members.
  • RBIH aims to create an ecosystem that focuses on promoting access to financial services and products for the low-income population in the country.
  • 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 would bring convergence among various stakeholders (BFSI Sector, Start-up ecosystem, Regulators & Academia) in the financial innovation space.

About RBI:

  • The Reserve Bank of India (RBI) is India's central bank, which controls the issue and supply of the Indian rupee.
  • It carries out India's monetary policy and exercises supervision and control over banks and non-banking finance companies in India.
  • RBI was set up in 1935 under the Reserve Bank of India Act, 1934.
  • It was nationalized in 1949.
  • It is headquartered in Mumbai.
  • Note: It was first headquartered in Kolkata, West Bengal
  • RBI plays an important part in the Development Strategy of the Government of India.
  • The current Governor of RBI is Shaktikanta Das.

About RBI's Central Board of Directors:

  • The RBI is governed by the Central Board of Directors.
  • The directors are appointed by the Government of India under the Reserve Bank of India Act.
  • The Central Board consists of Governor, four Deputy Governors, two finance ministry representatives and four directors to represent local boards.
  • These local boards are headquartered in Kolkata, Mumbai, Chennai and New Delhi.
  • The concept of RBI was based on the strategies formulated by Dr Ambedkar in his book “The Problem of the Rupee”.

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