Regulatory Sandbox Scheme:
The Reserve Bank tweaked guidelines for Regulatory Sandbox (RS) scheme.
- Regulatory Sandbox scheme refers to the live testing of new products or services in a controlled regulatory environment.
- It acts as a “safe space” for business as the regulators may or may not permit certain relaxations for the limited purpose of testing.
- It can provide a structured avenue for the regulator to engage with the ecosystem and to develop innovation-enabling or innovation-responsive regulations that facilitate the delivery of relevant, low-cost financial products.
- It is potentially an important tool which enables more dynamic, evidence-based regulatory environments which learn from and evolve with, emerging technologies.
- The RBI issued the ‘Enabling Framework for Regulatory Sandbox’ in August 2019, after wide-ranging consultations with stakeholders.
