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
The European Banking Authority (EBA) published the final draft regulatory technical standards on disclosure of investment policy by investment firms, under the Investment Firms Regulation (IFR).
The European Banking Authority (EBA) published version 5.1 of the filing rules for supervisory reporting.
The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.
The Australian Prudential Regulation Authority (APRA) published the prudential practice guide CPG 511 to assist banks, insurers, and superannuation licensees in meeting requirements of CPS 511, the new prudential standard on remuneration.
The Office of the Comptroller of the Currency (OCC) published a bulletin that provides an updated self-assessment tool for banks to evaluate their preparedness for cessation of the London Interbank Offered Rate (LIBOR).
The Financial Stability Board (FSB) published a report that examines the progress made toward disclosures aligned with recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
The Basel Committee on Banking Supervision (BCBS) published the progress report on adoption of the Basel III regulatory framework in member jurisdictions.
The French Prudential Supervisory Authority (ACPR) has implemented, in its information system, updates linked to the Data Point Model (DPM) version 3.1.
The European Banking Authority (EBA) published a thematic note that aims to identify and raise awareness of the transition risks of benchmark rates, as the London Interbank Offered Rate (LIBOR) and the Euro Overnight Index Average (EONIA) are close to being phased out.
In a letter to the federally regulated financial institutions and pension plans, the Office of the Superintendent of Financial Institutions (OSFI) published a summary of the feedback received to the January 2021 discussion paper on ways to address climate risks.