RBI releases enabling framework for regulatory sandbox to aid fintechs
RBI) has released a detailed framework for a ‘regulatory sandbox’ which will provide a safe and protected environment for innovative fintech startups to test their product hypothesis before taking it to the market.
In a note released on Wednesday, the central bank said a sandbox environment allows the regulator to engage with startups and “develop innovation-enabling or innovation-responsive regulations that facilitate delivery of relevant, low-cost financial products”. The sandbox will be supervised by the fintech department of the RBI.
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Offering CollegeCourseWebsiteIIM KozhikodeIIMK Advanced Data Science For ManagersVisitIndian School of BusinessISB Product ManagementVisitIndian School of BusinessISB Professional Certificate in Product ManagementVisitThis development comes at a time when the fintech industry has called out the central bank for being too rigid with fintech startups. Recently the regulator brought Paytm Payments Bank’s banking business to a halt and also put Visa’s business payments programme under hold until further consideration.
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While the regulator has taken an open stance on innovation in financial services through the sandbox, it has put cryptocurrency, trading in crypto assets, chain marketing services and initial coin offerings outside the purview of the sandbox, thereby showing a hardening of stance against private cryptocurrencies. It has shown openness towards blockchain solutions, though.
The central bank said it is open to
