The Reserve Bank of India (RBI) has recently updated its ‘Enabling Framework for Regulatory Sandbox’, with more stringent timelines and compliance provisions. The revised framework aims to promote responsible innovation in financial services and enhance consumer benefits. The timelines for the Regulatory Sandbox process have been extended from seven months to nine months, with additional requirements for compliance with the Digital Personal Data Protection Act, 2023.
According to the RBI, the objective of the Regulatory Sandbox is to foster responsible innovation in financial services, promote efficiency, and bring benefits to consumers. The framework has been revised based on the feedback received from Fintechs, banking partners, and other stakeholders, as well as the experience gained over the last four and half years through running four cohorts.
The ‘Enabling Framework for Regulatory Sandbox’ was initially introduced on the RBI website on August 13, 2019, after extensive consultations with stakeholders. The updated framework reflects the RBI’s commitment to creating a conducive environment for innovation in the financial sector, while ensuring compliance with data protection regulations and enhancing consumer protection.
