Last week, the RBI released the ‘Enabling Framework for Regulatory Sandbox’ (RS).
Key highlights of the framework are summarised below:
- Eligible applicants - Companies incorporated and registered in India or Banks licensed to operate in India
- Fit and Proper Criteria for Selection of Participants in RS - minimum net-worth of INR 25 lakhs, promoters/directors to be 'fit and proper', satisfactory CIBIL report for promoters/directors required
- End-to-End Sandbox Process shall be overseen by the FinTech Unit (FTU) under guidance of the Inter Departmental Group (IDG) of RBI
- RS may run a few cohorts with limited number of entities in each cohort testing their products during a stipulated period, focussing on areas of financial inclusion, payments and lending, digital KYC etc.
- RBI may consider relaxing, if warranted, some regulatory requirements for sandbox applicants, for the duration of the RS on a case-to-case basis
- After successful experimentation and exit, sandbox entity to fully comply with the relevant regulatory requirements
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