Karnataka HC: State Has Fundamental Duty to Supply Drinking Water Fit for Human Consumption  ||  Raj. HC: Can’t Extend ‘Child Specific’ Safeguards to Victim to Attaining Majority During Trial  ||  Delhi High Court: Sadhguru Seeks Protection against Infringement of his Personality Rights  ||  Delhi High Court Tells Mohak Mangal to Remove Words like ‘Gunda Raj’ from Video against ANI  ||  Supreme Court Clarifies Observations on Mumbai Gateway of India Jetty Project  ||  Supreme Court Expresses Concern Over Delay by Delhi HC in Deciding Bail Plea  ||  SC Quashes Rape Case against Man Who Backed Out from Marriage  ||  Allahabad High Court Refers Question on High Court's Power to Quash FIR to 9-Judge Bench  ||  Delhi HC: Online Applications for ‘No Entry Permits’ Must be Scrutinised  ||  Delhi High Court: It is Not Necessary to Use Trademark in Physical Form    

RBI set to issue guidelines on Regulatory Sandbox - (25 Mar 2019)

Banking

Reserve Bank will set up a regulatory sandbox, for which guidelines will be issued in the next two months. In the year, the Reserve Bank’s working group suggested introduction of a 'regulatory sandbox/innovation hub' within a well-defined space and duration to experiment with Financial Technology (FinTech) solutions, where the consequences of failure can be contained and reasons for failure be analysed. A ‘Regulatory Sandbox’ would benefit FinTech companies by way of reduced time to launch innovative products at a lower cost. In order to ensure proper development of FinTech and to protect the customers and safeguard the interest of all the stakeholders, an appropriate regulatory framework is required. Such frameworks would address associated risks while keeping in mind the growth requirements of this sector.

Live or virtual testing of new products or services, in a (controlled) testing environment, with or without any ‘regulatory relief’ is termed a ‘sandbox’. The testing environment could be available to regulated or unregulated firms, or both. Regulator provides the appropriate regulatory support by relaxing specific legal and regulatory requirements, which the sandbox entity will otherwise be subject to, for the duration of the sandbox. Users of a sandbox can test the product’s viability without the need for a larger and more expensive roll out. If the product appears to have the potential to be successful, the product might then be authorized and brought to the broader market more quickly.

Governor, Reserve Bank of India in a FinTech conclave, 2019 said that, it has the potential to reshape the financial services and financial inclusion landscape in India in fundamental ways. Further, it can reduce costs and improve access and quality of financial services. Sandbox should help to encourage more FinTech experimentation within a well-defined space and duration where regulators will provide the requisite regulatory support, so as to increase efficiency, manage risks better and create new opportunities for consumers.

Tags : REGULATORY SANDBOX   FINANCIAL TECHNOLOGY   GUIDELINES  

Share :        

Disclaimer | Copyright 2025 - All Rights Reserved