RBI to issue norms in 2 months: Das
New Delhi: To promote innovation in FinTech space, the central bank will issue guidelines for regulatory...
New Delhi: To promote innovation in FinTech space, the central bank will issue guidelines for regulatory sandbox in the next two months, RBI Governor Shaktikanta Das said on Monday.
A regulatory sandbox is a framework set up by a regulator that allows FinTech startups to conduct live experiments in a controlled environment under supervision.
"A 'Regulatory Sandbox' would benefit FinTech companies by way of reduced time to launch innovative products at a lower cost. Going forward, the Reserve Bank will set up a regulatory sandbox, for which guidelines will be issued in the next two months," he said at an event organised by NITI Aayog here.
The RBI's working group on FinTech and digital banking in November 2017, had suggested the introduction of a regulatory sandbox/innovation hub within a well-defined space and duration to experiment with FinTech solutions, where the consequences of failure can be contained and reasons for failure analysed.
Observing that FinTech has the potential to reshape the financial services and financial inclusion landscape in India in fundamental ways, he said, it can reduce costs and improve access and quality of financial services.