{"id":3488,"date":"2019-04-22T08:32:39","date_gmt":"2019-04-22T03:02:39","guid":{"rendered":"http:\/\/yourcareerheights.com\/?p=3488"},"modified":"2019-04-22T08:32:40","modified_gmt":"2019-04-22T03:02:40","slug":"rbi-releases-draft-enabling-framework-for-regulatory-sandbox","status":"publish","type":"post","link":"https:\/\/yourcareerheights.com\/?p=3488","title":{"rendered":"RBI releases draft \u201cEnabling Framework for Regulatory Sandbox\u201d"},"content":{"rendered":"
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In view of the growing significance of FinTech innovations and their interface with the financial sector as well as financial sector entities, the Financial Stability and Development Council - Sub Committee had decided to set up a Working Group (WG), to look into and report on the granular aspects of FinTech and its implications, so as to review and reorient appropriately the regulatory framework and respond to the dynamics of the rapidly evolving FinTech scenario.<\/p>\n

Pursuant to this decision, Reserve Bank of India set up an inter-regulatory WG under the chairmanship of Executive Director, Department of Banking Regulation (DBR) to look into and report on the granular aspects of FinTech, to leverage on the developments in FinTech space. The WG included representatives from RBI, SEBI, IRDA, PFRDA, NPCI, IDRBT, select banks and rating agencies. The \u2018Report of the WG on FinTech and Digital Banking\u2019<\/strong> was placed in public domain in February 2018. One of the key recommendations of the WG was to introduce an appropriate framework for a \u2018Regulatory Sandbox\u2019 within a well-defined space and duration.<\/p>\n

The Reserve Bank of India released on 18th April 2019, the draft \u2018Enabling Framework for Regulatory Sandbox\u2019<\/strong>. Comments on the draft guidelines are invited from stakeholders by May 08, 2019.<\/h3>\n
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What is Regulatory Sandbox?<\/b><\/div>\n
\u2022 A regulatory sandbox is a regulatory approach,\u00a0\u00a0typically summarized in writing and published, that allows live, time-bound testing of innovations under\u00a0a regulator\u2019s oversight. Novel financial products,technologies, and business models can be tested\u00a0under a set of rules, supervision requirements, and appropriate safeguards.<\/div>\n
\u2022 A sandbox creates a conducive and contained space\u00a0where incumbents and challengers experiment with innovations at the edge or even outside of the existing innovations at the edge or even outside of the existing regulatory framework.<\/div>\n
\u2022 A regulatory sandbox brings the cost of innovation down, reduces barriers to entry, and allows regulators to collect important insights before deciding if further regulatory action is necessary.<\/div>\n
\u2022 A successful test may result in several outcomes, including full-fledged or tailored authorization of the innovation, changes in regulation, or a cease-and desist order.<\/div>\n
\u2022 The first regulatory sandbox was launched in 2015 in\u00a0the U.K. and generated great interest from regulators and innovators around the world. At the beginning of 2018, there were more than 20 jurisdictions actively implementing or exploring the concept.<\/div>\n<\/div>\n
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For Details on RBI's Regulatory Sandbox please click on the following link:The Regulatory Sandbox: Principles and Objectives<\/a><\/div>\n<\/div>\n<\/div>\n<\/div><\/div><\/div><\/div><\/div><\/div>","protected":false},"excerpt":{"rendered":"

In view of the growing significance of FinTech innovations and their interface with the financial sector as well as financial sector entities, the Financial Stability and Development Council – Sub Committee had decided to set up a Working Group (WG), to look into and report on the granular aspects of FinTech and its implications, so…<\/p>\n","protected":false},"author":1,"featured_media":3384,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[38,5,221,10,32,2,562],"tags":[3,61,40,563],"class_list":["post-3488","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking","category-banking-jobs","category-digital-banking","category-economy","category-ibps","category-interview","category-regulatory-sandbox","tag-banking","tag-digital","tag-rbi","tag-regulatory-sandbox"],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/yourcareerheights.com\/wp-content\/uploads\/2019\/02\/Banking-Ombudsman.jpg?fit=318%2C159&ssl=1","jetpack_sharing_enabled":true,"jetpack-related-posts":[],"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/posts\/3488","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3488"}],"version-history":[{"count":1,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/posts\/3488\/revisions"}],"predecessor-version":[{"id":3489,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/posts\/3488\/revisions\/3489"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/media\/3384"}],"wp:attachment":[{"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3488"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3488"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3488"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}