CrackitToday App

Regulatory Sandbox Scheme

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.