There is an unusual one-of-kind competition brewing within the Indian fintech space. It is so disruptive that its leaving founders and chief executives of some of India’s biggest fintechs feeling pretty intimidated and also helpless. 

The funny thing is, the brains behind this new competitor that’s left the whole industry feeling pretty blindsided is the Reserve Bank of India itself. It is a wholly-owned subsidiary of the banking regulator. And it’s called the Reserve Bank Innovation Hub or RBIH. 

The RBIH has been around for two years now. It's a first-of-its kind sort of company, because it is led by a central bank. Now, perhaps its closest counterpart, would be the National Payments Corporation of India or NPCI. We all know it for creating the unified payments interface or UPI. The NPCI is owned by a consortium of banks, whereas the RBIH is wholly owned by the regulator. 

It’s raison detre is simple: it’s meant to accelerate innovation across the financial sector. 

But unlike the NPCI, which collaborates with lenders in some way or the other to develop its products, the RBIH asks lenders to participate. But for the most part, a lot of fintech founders say that it works in a silo. 

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