IIT Madras Incubation Cell (IITMIC) and RBI Innovation Hub (RBIH), a wholly owned subsidiary of the Reserve Bank of India, have signed an MoU to promote innovation across the financial sector through the use of technology,
IITMIC and RBIH will together develop a fintech ecosystem in India that is necessary to support and scale fintech startups. The two will jointly provide incubation support and nurture early-stage startups in the fintech domain.
Slected startups that will be incubated at IITMIC will also be considered for co-incubation by RBIH. This way the selected startups will receive strategic and operational guidance, training and mentoring sessions from RBIH leadership and domain experts, market access, and access to a larger ecosystem of startups, vendors, investors, and other key resources.
Under this partnership, the IITM Incubation Cell and RBIH may also collaborate on projects such as policy whitepapers and research papers.
Last November, a report suggested that the Indian FinTech Transactions Market is projected to cross USD 8.384.48 billion by FY2027 at a CAGR of 49.13%, on account of strong support by the government for a cashless economy.
As per international body Financial Stability Board (FSB), FinTech is defined as “technology-enabled innovation in financial services that could result in new business models, applications, processes or products with an associated material effect on the provision of financial services”.