Aug. 14, 2019

The Reserve Bank of India (RBI) released the final ‘enabling framework for regulatory sandbox,’ taking into account inputs received after a consultation process that began in April.

Salient features of framework:

  • The target applicants for entry to the RS, are FinTech companies including startups, banks, financial institutions and any other company partnering with or providing support to financial services businesses, subject to the sandbox criteria laid down in these guidelines.

  • Minimum net worth requirement for applicants relaxed to Rs 25 lakh from Rs 50 lakh earlier.

  • Notice period for a fintech to exit the RS increased to one month from one week earlier.

  • The entity should either be a company incorporated and registered in the country or banks licensed to operate in India.

  • Sandbox entities shall be required to take liability or indemnity insurance of an adequate amount and period to safeguard the interest of the customers.

  • An indicative negative list of products/services/technology which may not be accepted for testing is: Credit registry, Credit information, Crypto currency/Crypto assets services, Trading/investing/settling in crypto assets, Initial Coin Offerings, Chain marketing services etc. 

Source : RBI