Featured Product

    RBI Publishes Enabling Framework for Regulatory Sandbox

    April 18, 2019

    RBI released a draft enabling framework for the regulatory sandbox in India. The proposal describes clear principles, the role of the proposed regulatory sandbox, the pros and cons of sandbox approach, the reasons for setting up a regulatory sandbox, and the RBI expectations. As per the proposal, the regulatory sandbox shall begin the testing process with 10 to 12 selected entities through a comprehensive selection process, as detailed in the framework under the "Fit and Proper criteria" for selection of participants in the regulatory sandbox. Comments on the draft guidelines were invited by May 08, 2019.

    A regulatory sandbox usually refers to live testing of new products or services in a controlled/test regulatory environment, for which regulators may (or may not) permit certain regulatory relaxations for the limited purpose of testing. The regulatory sandbox allows regulator, innovators, financial service providers (as potential deployers of the technology), and customers (as final users) to conduct field tests to collect evidence on the benefits and risks of new financial innovations, while carefully monitoring and containing their risks. The regulatory sandbox is potentially an important tool, which enables more dynamic, evidence-based regulatory environments that learn from, and evolve with, emerging technologies. The proposed financial service to be launched under the regulatory sandbox should include new or emerging technology, or use of existing technology in an innovative way, and should address a problem, or bring benefits to consumers.

    RBI had set up an inter-regulatory Working Group in July 2016 to look into and report on the granular aspects of fintech and its implications, with the aim to review the regulatory framework and respond to the dynamics of the rapidly evolving fintech scenario. The report of the Working Group was released on February 08, 2018 for public comments. One of the key recommendations of the Working Group was to introduce an appropriate framework for a regulatory sandbox within a well-defined space and the duration for which the financial sector regulator will provide the requisite regulatory guidance, to increase efficiency, manage risks, and create new opportunities for consumers. Accordingly, RBI has released this proposed framework for regulatory sandbox.

     

    Comment Due Date: May 08, 2019

    Keywords: Asia Pacific, India, Banking, Insurance, Securities, Regulatory Sandbox, Fintech, Technology, Regtech, RBI

    Related Articles
    News

    EBA Analyzes Impact of Unwind Mechanism of Liquidity Coverage Ratio

    EBA published a report analyzing the impact of the unwind mechanism of the liquidity coverage ratio (LCR) for a sample of European banks over a three-year period, from the end of 2016 to the first quarter of 2020.

    November 19, 2020 WebPage Regulatory News
    News

    ECB Outlines Views on Possible Changes to AnaCredit Rule and TLTROs

    In response to questions from a member of the European Parliament, the ECB President Christine Lagarde issued a letter clarifying the possibility of amending the AnaCredit Regulation and making targeted longer-term refinancing operations (TLTROs) dependent on the climate-related impact of bank loans.

    November 19, 2020 WebPage Regulatory News
    News

    IASB Begins First Phase of Post-Implementation Review of IFRS 9

    IASB started the post-implementation review of the classification and measurement requirements in IFRS 9 on financial instruments and added the review as a project to its work plan.

    November 18, 2020 WebPage Regulatory News
    News

    FSB Report Examines Progress in Resolvability of Systemic Institutions

    FSB published a report that examines progress in implementing policy measures to enhance the resolvability of systemically important financial institutions.

    November 18, 2020 WebPage Regulatory News
    News

    EBA Benchmarks National Insolvency Frameworks Across EU

    EBA published a report on the benchmarking of national loan enforcement frameworks across 27 EU member states, in response to the call for advice from EC.

    November 18, 2020 WebPage Regulatory News
    News

    FSB Reports Assess Impact of Pandemic on Financial Stability

    FSB published a letter from its Chair Randal K. Quarles, along with two reports exploring various aspects of the market turmoil resulting from the COVID-19 event.

    November 17, 2020 WebPage Regulatory News
    News

    RBNZ Consults on Implementation of Capital Review Changes

    RBNZ launched a consultation on the details for implementing the final Capital Review decisions announced in December 2019.

    November 17, 2020 WebPage Regulatory News
    News

    IASB Announces Andreas Barckow as the New Chair from July 2021

    The Trustees of the IFRS Foundation, which are responsible for the governance and oversight of IASB, have announced the appointment of Dr. Andreas Barckow as the IASB Chair, effective July 2021.

    November 17, 2020 WebPage Regulatory News
    News

    HKMA Consults on Capital Rules for Bank Equity Investments in Funds

    HKMA issued a letter to consult the banking industry on a full set of proposed draft amendments to the Banking (Capital) Rules for implementing the Basel standard on capital requirements for banks’ equity investments in funds in Hong Kong.

    November 17, 2020 WebPage Regulatory News
    News

    ESRB Supports Extension of Macro-Prudential Measure by Swedish FSA

    ESRB published an opinion assessing the decision of Swedish Financial Supervisory Authority (FSA) to extend the application period of a stricter measure for residential mortgage lending, in accordance with Article 458 of the Capital Requirements Regulation (CRR).

    November 17, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 6153