RBI issues final norms for regulatory box

GS-III: RBI issues final norms for regulatory box

News

The Reserve Bank of India (RBI) has issued the final framework for the regulatory sandbox in order to enable innovations in financial technology.

Regulatory Sandbox

A regulatory sandbox usually refers to live testing of new products or services in a controlled regulatory environment for which regulators may permit certain regulatory relaxations for the limited purpose of the testing.
The objective of the sandbox is to foster responsible innovation in financial services, promote efficiency and bring benefit to consumers.
It provides a secure environment for fintech firms to experiment with products under the supervision of a regulator.
It is an infrastructure that helps fintech players live to test their products or solutions, before getting the necessary regulatory approvals for a mass launch, saving start-ups time and cost.
The concept of a regulatory sandbox or innovation hub for fintech firms was mooted by a committee headed by then RBI executive director Sudarshan Sen.
The panel submitted its report in Nov 2017 has called for a regulatory sandbox to help firms experiment with fintech solutions, where the consequences of failure can be contained and reasons for failure analysed.
If the product appears to have the potential to be successful, it might be authorised and brought to the broader market more quickly.

What are the new RBI norms?

RBI will launch the sandbox for entities that meet the criteria of a minimum net worth of 25 lakh as per their latest audited balance sheet.
The entity should either be a company incorporated and registered in the country or a bank licensed to operate in India.
While money transfer services, digital know-your-customer, financial inclusion and cyber security products are included, cryptocurrency, credit registry and credit information have been left out.

Meeting norms on customer privacy, data protection, security and access to payment data, the security of transactions, KYC, and anti-money laundering will be mandatory.

Source: Indian Express

Join Our Telegram

Panchamirtham’ of Palani temple gets GI tag

Sacrificing liberty for national security

Oceanic Anoxic Event 1a and MASS EXTINCTION

25 Dec, 24
SHARE

Oceanic Anoxic Event 1a from the Paris Basin (Environment) Paper-3 PMP OAE 1a refers to a period during the Cretaceous Period (145 million years ago and ended 66 million years ago) when Earth's oceans became depleted of oxygen, causing a significant disruption in marine life. Cause: The event is believed to have been

Viksit Panchayat Karmayogi (Good governance)

26 Dec, 24
SHARE

Viksit Panchayat Karmayogi (Good governance) Governance GS PAPER-2 PMP Dr. Jitendra Singh launched the ‘Viksit Panchayat Karmayogi’ initiative on Good Governance Day, celebrated to mark the 100th birth anniversary of former Prime Minister Atal Bihari Vajpayee. The initiative, which is part of the broader ‘Prashasan Gaon

Major programmes to control Air Pollution

23 Dec, 24
SHARE

Major programmes to control Air Pollution National Clean Air Programme? It was launched by the Ministry of Environment, Forests, and Climate Change (MoEFCC) in January 2019. It is the first-ever effort in the country to frame a national framework for air quality management with a time-bound reduction target. The

Air pollution and Air quality Measures in India

21 Dec, 24
SHARE

Air pollution and Air quality Measures in India (Environment) GS Paper-3 P-M-P Air pollution may be defined as the presence of any solid, liquid or gaseous substance including noise and radioactive radiation in the atmosphere in such concentration that may be directly and/or indirectly injurious to humans or other l

Geopolitical Significance of Ports

20 Dec, 24
SHARE

Geopolitical Significance of Ports (IR) Act as Geopolitical Assets: Ports enhance the projection of strategic reach, which helps strengthen the country’s control over important sea and energy supply routes. E.g. Indian Navy’s staging base at Agalega Islands will enable marine patrols