How to edit Selection indicator in UIPicker?

This is not a feature of UIPickerView in the disclosed API. The screenshot you show is either drawing the "hrs", "min", "sec" labels itself or is using an undisclosed API (possibly overriding the _UIPickerViewSelectionBar).
It would be pretty easy to draw labels like this yourself. Just get the UIPickerView and add the UILabels over the top of the UIPickerView after it has loaded.
 
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