RBI Releases Draft Framework For Regulatory Sandbox to Create Innovation Test Lab For FinTech

The Reserve Bank of India has come out with the enabling framework for a regulatory sandbox on 24^th April 2019 to help Fintech Startups. Department for Promotion of Industry and Internal Trade (DPIIT) has acknowledged Fintech Startups to take part in Sandbox testing. While crypto startups expelled from the sandbox testing not even in the draft phase. The Sandboxtesting process will start with around ten to twelve selected entities with the main focus on financial inclusion, digital KYC and payments, and lending, etc. As per the RBI, the end to end sandbox process should be completed within six months. Now, let’s discuss the draft framework for regulatory sandbox in details;

What Is Regulatory Sandbox?

This is an evolutionary phase for Fintech startups in India in terms of payments; insurance and lending. Now, banking services are rendered through mobile. The Reserve Bank of India (RBI) came up with a draft ‘Enabling Framework for Regulatory Sandbox acknowledging the latest innovations by Fintech startups. This framework will permit Fintech startups to test within a regulatory sandbox (RS).