Page 8 - Banking Finance May 2022

RBI CORNER

Reserve Bank

News

RBI's innovation hub is an investment for the future REs and adequacy of customer service
regulations, and suggest measures to
The Reserve Bank of India's (RBI) innovation hub, set up with an initial capi-
improve these issues, said the State-
tal contribution of Rs 100 crore, to encourage and nurture innovation across ment on Developmental and Regula-
the financial sector, is expected to build an ecosystem for development of
tory Policies.
prototypes, patents, proofs of concept, and promote cross thinking spanning
regulatory domains, Shaktikanta Das, Governor, RBI, said. The RBI has, over the years, taken a
number of measures, including laying
Speaking at the inauguration of Reserve Bank Inauguration Hub (RBIH), Das
said, "The RBIH is an investment for the future". down an elaborate regulatory frame-
work on customer service and internal
"With its own independent Board comprising eminent members from indus- grievance redress at REs, and also put-
try and academia, I am sure RBIH is perfectly positioned to facilitate conver- ting in place the Ombudsman frame-
gence of ideas among various stakeholders", the governor said.
work to ensure overarching protection
He also said that the focus of RBIH should be to promote access to financial for customers.
services and products for the low-income population of the country. "It should
be our duty to promote such innovation that not only improves process effi- RBI to allow cardless cash
ciencies but also transforms the society", he said.
withdrawals
RBIH has plans of identifying and mentoring start-ups having maximum po-
tential. The hub will also collaborate with various government ministries and The Reserve Bank of India (RBI) pro-
departments as well as academia to identify problem statements in different posed to make card-less cash with-
domains and explore potential solutions. drawal facility available across all
banks and ATM networks using the
Committee to review cus- deepening of digital penetration and Unified Payments Interface (UPI).
emergence of various service provid- At present, the facility of card-less cash
tomer service in regulated
ers, it is proposed to set up a commit- withdrawal through ATMs is limited to
entities tee to examine and review the current only to a few banks. As per the central
RBI will soon set up a committee to state of customer service in the RBI- bank, card-less cash withdrawal
examine and review the current state regulated entities, adequacy of cus- through ATMs is a permitted mode of
of customer service in the RBI-regu- tomer service regulations and suggest transaction offered by a few banks in
lated entities. measure to improve the same," said the country on an on-us basis (for their
"In view of the transformation under- RBI Governor Shaktikanta Das. customers at their own ATMs).
way in the financial landscape due to The committee will examine and re- "Now you can send money from a bank
innovations in products and services, view the state of customer service in account to anyone in India with a valid

8 | 2022 | MAY | BANKING FINANCE