The Reserve Bank of India (RBI) has released the final framework for setting up a regulatory sandbox to enable innovations in financial technology. This will allow fintechs to test their applications in a flexible regulatory environment before introducing them to consumers.RBI will join the league of other central banks in the world that have set up regulatory sandbox to encourage the development of new technological applications in banking.Fintech companies can explore areas like retail payments, money transfer, digital Know Your Customer (KYC), smart contracts, financial inclusion and cybersecurity among others.The Indian banking regulator, however, left cryptocurrency out of the list. Credit registry, credit information, Initial Coin Offering (ICO) and chain marketing have also been kept out of the sandbox.“The proposed FinTech solution should highlight an existing gap in the financial ecosystem and the proposal should demonstrate how it would address the problem, and bring … [Read more...] about RBI sets norms to build regulatory sandbox for innovation in fintech
