Mumbai: The Reserve Bank of India Wednesday made some adjustments to the guidelines for the Regulatory Sandbox (RS) program.
This initiative requires participating entities to adhere to regulations concerning the protection of digital personal data.
The Regulatory Sandbox typically involves real-world trials of novel products or services within a regulated environment, where regulators may grant specific relaxations for the purpose of testing, subject to certain conditions.
The Reserve Bank of India introduced the 'Enabling Framework for Regulatory Sandbox' in August 2019 following extensive consultations with various stakeholders.
The primary goal of the Regulatory Sandbox is to encourage responsible innovation within the financial services sector, enhance efficiency, and deliver advantages to consumers.
On Wednesday, the RBI uploaded the revised 'Enabling Framework for Regulatory Sandbox' on its website.
According to the RBI, this framework has been updated taking into account the knowledge acquired over the past four and a half years from operating four cohorts, as well as feedback received from fintech firms, banking partners, and other stakeholders.
"Among others, the timelines of the various stages of the Regulatory Sandbox process have been revised from seven months to nine months," it said.
Furthermore, the revised framework mandates sandbox entities to uphold compliance with the stipulations outlined in the Digital Personal Data Protection Act of 2023.
As for eligibility, the Regulatory Sandbox targets applicants such as fintech enterprises, including startups, banks, financial institutions, as well as any other entities including Limited Liability Partnerships (LLPs) and partnership firms, whether collaborating with or offering assistance to financial services ventures.
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