RBI announced the opening of first cohort under the Regulatory Sandbox with retail payments as its theme. The innovative products or services that shall be considered for inclusion under Regulatory Sandbox include mobile payments such as feature-phone-based payment services, offline payment solutions, and contactless payments. The window for submission of application for the first cohort shall be open from November 15 to December 15, 2019. RBI also published the format of application to the Regulatory Sandbox.
The adoption of retail payments as the theme is expected to spur innovation in digital payments space and help in offering payment services to the unserved and underserved segment of the population. The entities meeting the eligibility criteria as laid out in the framework may apply. The target applicants for entry to the regulatory sandbox are fintech companies such as startups, banks, financial institutions, and any other company partnering with or providing support to financial services businesses, subject to the sandbox criteria laid down in these guidelines. However, it may be noted that the live testing of new products or services in a controlled environment may require a bank, non-bank financial institution or any other partner, for the testing to commence. In such cases, a suitable partner may be secured in advance to be eligible for admission to the Regulatory Sandbox.
The Regulatory Sandbox is, at its core, a formal regulatory program for market participants to test new products, services, or business models with customers in a live environment, subject to certain safeguards and oversight. The focus of the Regulatory Sandbox will be to encourage innovations intended for use in the Indian market in areas where there is absence of governing regulations, where there is a need to temporarily ease regulations for enabling the proposed innovation, and where the proposed innovation shows promise of easing or effecting delivery of financial services in a significant way.
Keywords: Asia Pacific, India, Banking, Regulatory Sandbox, Fintech, Regtech, First Cohort, RBI
Previous ArticleHKMA Consultation on Framework for Supervision of Liquidity Risk
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.
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.
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.
FSB published a report that examines progress in implementing policy measures to enhance the resolvability of systemically important financial institutions.
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.
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.
RBNZ launched a consultation on the details for implementing the final Capital Review decisions announced in December 2019.
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.
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.
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).