Reserve Bank of India (RBI) has recently revised the ‘Enabling Framework for Regulatory Sandbox‘, aimed at fostering responsible innovation in financial services.
Highlights of the update:
- RBI has extended the timelines for various stages of the Sandbox process from 7 months to 9 months.
- The updated framework mandates sandbox entities to comply with provisions of the Digital Personal Data Protection Act, 2023.
- If a proposed product or service resembles one already tested under the Regulatory Sandbox and offers no new innovation, RBI may not consider it eligible.
About the Regulatory Sandbox (RS):
- The RS aims to facilitate responsible innovation and provide a controlled environment for testing new products or services.
- RBI initiated the RSin 2019 to promote efficiency and consumer benefit in financial services.
Ref:Source
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