In an Economic Times article (April 22, 2019), Wriju Ray, CBO and co-founder at IDfy, highlighted the need for clarification on access to data when it comes to the RBI's Regulatory Sandbox initiative.  

At IDfy, we believe in the Regulatory Sandbox. We think it's a great way to get Artificial Intelligence (AI) and Machine Learning (ML) driven solutions accepted by regulators.

With the Regulatory Sandbox, one can test technology solutions in a controlled environment. This will help drive acceptance for these cutting-edge technology solutions. Like our Face Match and Liveness solutions, and our ID validation and authentication APIs that drive realtime authentication.

A key benefit of the Regulatory Sandbox is the use of AI and ML in decision making in key processes such as KYC.

Large amounts of data is a pre-requisite for any AI and ML-based solution. Data can, of course, be procured from publicly available sources. But these are limited and there is little clarity on how to open this up in a structured way. Data can also be collected privately but large amounts of data are available only with large companies. However, the Regulatory Sandbox is open only to start-ups at the moment who usually do not have the volume of data an AI/ML solution needs to be built upon.

Speaking to the Economic Times, Wriju said that the one crucial piece that was missed out in the draft guidelines is ‘access to data’.

“Data either comes from larger clients who have a lot of customers or from public data sources, and public data is not within its purview,” he added.

IDfy, a world's top 100 company in Regulatory Technologies, provides AI and Machine Learning driven solutions for KYC and fraud detection to Fintechs.

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