|Sportstar Aces Awards 2023 | VOTE FOR TOP CATEGORIES

RBI issues final norms for regulatory sandbox

‘FinTech should highlight existing gap’

August 13, 2019 10:18 pm | Updated 10:18 pm IST - Mumbai

The Reserve Bank of India (RBI) on Tuesday issued the final framework for regulatory sandbox in order to enable innovations in the financial technology space.

A regulatory sandbox usually refers to live testing of new products or services in a controlled/test regulatory environment for which regulators may permit certain regulatory relaxations for the limited purpose of the testing.

RBI said the objective of the sandbox was to foster responsible innovation in financial services, promote efficiency and bring benefit to consumers.

“The proposed FinTech solution should highlight an existing gap in the financial ecosystem and the proposal should demonstrate how it would address the problem, and bring benefits to consumers or the industry and/or perform the same work more efficiently,” the banking regulator said.

Minimum networth

RBI will launch the sandbox for entities that meet the criteria of minimum net worth of ₹25 lakh as per their latest audited balance sheet.

The entity should either be a company incorporated and registered in the country or banks licensed to operate in India.

While money transfer services, digital know-your customer, financial inclusion and cybersecurity products are included, crypto currency, credit registry and credit information have been left out.

Top News Today

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.