With Regulatory Sandbox, RBI Looks to Create Innovation Test Lab For Fintech
After successful sandbox testing, fintech startups may still need regulatory approvals before their products, services, or technology can be permitted for wider application.
- Acknowledging the recent innovations by fintech startups, the Reserve Bank of India (RBI) has now released a draft 'Enabling Framework for Regulatory Sandbox' that will allow fintech startups to test within a regulatory sandbox (RS).
- After successful sandbox testing, fintech startups may still need regulatory approvals before their products, services, or technology can be permitted for wider application, according to the draft.
- A regulatory sandbox refers to live testing of new products or services in a controlled or regulatory test environment for which regulators may (or may not) permit certain relaxations for the duration of testing.
- With this RBI looks to provide an environment to fintech startups for limited-scale testing of a new product or service before a wider-scale launch.
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