RBI to Set Up ‘Innovation Hub’ to Promote Innovation across fin-tech Sector
Newsletter Week 32: (03 Aug- 09 Aug’20)
The Reserve Bank of India on Thursday, 6th August has announced that it will be setting up an innovation hub to promote innovation across the financial sector by leveraging technology.
The Innovation hub will act as a center for ideation and incubation of new capabilities which can be leveraged to create viable and innovative financial products and services.
The aim is to achieve the wider objectives of deepening the financial inclusion, efficient banking services, business continuity in times of emergency and strengthening consumer protection.
The governor, Shaktikanta Das during his monetary policy speech also brought into light that RBI will bring startups under the compass of Priority Sector Lending (PSL) bringing them in a position to borrow capital from banks smoothly.
Das stated, “With a view to aligning the guidelines with emerging national priorities and bring sharper focus on inclusive development, the Priority Sector Lending (PSL) guidelines have been reviewed.”
Priority Sector Lending is intended to provide institutional credit to a few specific sectors. Currently, agriculture, MSMEs (micro, small and medium enterprises), education, housing, social infrastructure, and other sectors fall under the ambit of priority sector lending.
RBI, commenting on the current development said that the guidelines have been reviewed after consultations from the stakeholders to bring sharper focus on inclusive development. The guidelines further aim to encourage and support environment-friendly lending policies to help achieve Sustainable Development Goals (SDGs).