Supreme Court: Registered Sale Deed Carries Strong Presumption of Genuineness  ||  SC: Registry Cannot Intrude Into Judiciary’s Exclusive Domain By Questioning Why a Party is Impleaded  ||  Calcutta HC: Third-Party Suits in a Deity’s Name are Allowed Only When The Sebait Loses Authority  ||  Madras HC: Encroachment on a Public Street Cannot be Allowed Even If It Has a Religious Character  ||  Karnataka HC: Bike Taxi Business Protected under Article 19(1)(G); State Can Regulate But Not Ban  ||  Allahabad HC: Not Specifying Arrest Grounds in Memo is Dereliction; Erring Cops Must be Suspended  ||  Del. HC Stresses Mandatory Legal Assistance to Preserve Fairness and Integrity of Criminal Trials  ||  Supreme Court: Delhi High Court Ruling upheld on Taekwondo National Sports Federation Recognition  ||  SC: Blockchain-Based Digitisation of Land Records Necessary to Reduce Property Document Litigation  ||  Supreme Court to NCLT : Limit Power to Decide Intellectual Property Title Disputes under IBC    

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 2026 - All Rights Reserved