The Reserve Bank on Wednesday announced the second cohort under the Regulatory Sandbox (RS) with the theme of Cross Border Payments and also reduced net-worth requirement for entities interested in participating. Regulatory sandbox refers to live testing of new products or services in a controlled/test regulatory environment for which regulators may permit certain relaxations for the limited purpose of the testing. The RS allows the regulator, innovators, financial service providers and customers to conduct field tests to collect evidence on the benefits and risks of new products and systems. The central bank had announced opening of the first cohort under RS with the theme of Retail Payments .
Regulatory Sandbox: RBI seeks applications under 2nd cohort
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RBI identifies cross border payments for the second leg of sandbox innovation
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Last Updated: Dec 16, 2020, 09:24 PM IST
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Under the program which commenced earlier this year, banks, fintech and technology companies can collaborate and run real-time experimental pilots under the supervision of a central bank team who can then determine the efficacy of mass-market applications based on the results.
India is the largest recipient of inbound remittances across the globe accounting for 15% of the global share in 2019 receiving around $83 billion. In the first half-year of 2020, India has received $27.4 billion, RBI said.
Mumbai: The Reserve Bank of India has identified cross-border payments as the second cohort of its regulatory sandbox (RS) program in a bid to make international remittance channels and make them more accessible and affordable.
RBI announces 2nd cohort under regulatory sandbox with theme of cross border payments
The central bank had announced opening of the first cohort under RS with the theme of Retail Payments . PTI
RBI | Representative Image
The Reserve Bank on Wednesday announced the second cohort under the Regulatory Sandbox (RS) with the theme of Cross Border Payments and also reduced net-worth requirement for entities interested in participating. Regulatory sandbox refers to live testing of new products or services in a controlled/test regulatory environment for which regulators may permit certain relaxations for the limited purpose of the testing.
The RS allows the regulator, innovators, financial service providers and customers to conduct field tests to collect evidence on the benefits and risks of new products and systems. The central bank had announced opening of the first cohort under RS with the theme of Retail Payments .
December 16, 2020
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The Reserve Bank of India (RBI) has reduced the net worth requirement for applicants for entry to the Regulatory Sandbox (RS) to foster innovation in financial services. Further, the central bank has allowed partnership firms and Limited Liability Partnership (LLPs) to participate in RS.
RS refers to the live testing of new products or services in a controlled/ test regulatory environment for which regulators may (or may not) permit certain regulatory relaxations for the limited purpose of the testing.
As per the modified enabling framework, an entity seeking entry to RS shall have a minimum net worth of ₹10 lakh as per its latest audited balance sheet against the existing ₹25 lakh.
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