Supreme Court Upholds Conviction as Husband Failed to Explain Wife’s Death in Matrimonial Home  ||  Supreme Court: Crime Scene Re-Enactment Does Not Always Violate Right Against Self-Incrimination  ||  Supreme Court: Cognizance Taken Without Hearing Accused under BNSS Section 223 is Void Ab Initio  ||  Supreme Court Upholds Will in Sister’s Favour, Says Excluding Natural Heirs is Not Suspicious  ||  Delhi HC: Absence of Public Witnesses and Videography in NDPS Recovery Relevant for Bail Decisions  ||  Raj HC Initiates Suo Motu Cognizance Over Severe Water Crisis in Jodhpur, Issues Interim Directions  ||  Del HC: Courts Cannot Direct, Monitor Inquiry Into Police Delay in Investigation After Bail Decision  ||  Supreme Court: After the BNSS, a Pre-Cognizance Hearing is Mandatory in PMLA Cases  ||  SC: Landowners Cannot be Forced to Waive Statutory Compensation to Claim Other Benefits  ||  Supreme Court: Banks are Lenient With Big Borrowers But Strict With Ordinary Loan Applicants    

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