The Reserve Bank of India on Thursday released a draft of fintech regulatory sandbox framework for stakeholder comments. The draft proposes that fintech startups could participate in a sandbox monitored by RBI to provide fresh industry solutions in tech services such as retail payments, digital KYC and remittance services, among others. A regulatory sandbox (RS) is a controlled environment for commercial testing of new technology with limited regulations and customer exposure. The proposed sandbox would start its first phase by featuring 10-12 Indian startups, above a net worth of 50 lakh and with requisite IT infrastructure only “if the proposed FinTech solution should highlight an existing gap in the financial ecosystem and demonstrate how it would address the problem”. The central bank has set a deadline May 8, 2019, for stakeholder comments on the released draft after which the RBI would release the final guidelines.

(ET Tech)