5 MSME lending products complete test phase under RBI's sandbox scheme

The Reserve Bank on Friday said five products related to MSME lending have completed the test phase under its regulatory sandbox cohort and regulated entities may consider them for adoption.

Regulatory sandbox usually refers to live testing of new products or services in a controlled/test regulatory environment, for which regulators may (or may not) permit certain relaxations for the limited purpose of the testing.

Meanwhile, the central bank has also announced the fifth cohort under the regulatory sandbox scheme.

Innovative products, services and technologies cutting across various functions in RBI's regulatory domain are eligible to apply for the sandbox scheme, the central bank said. Applications may be submitted from October 30 to November 30, 2023.

The RBI said products of the entities which completed the 'Test Phase' were evaluated based on mutually agreed test scenarios and expected outcomes.

Products of FinAGG Technologies Private Limited, Mynd Solutions Private Limited, Rupifi Technology Solutions Private Limited, Small Industries Development Bank of India, and SysArc Infomatix Private Limited have completed the 'Test Phase'.

The RBI had invited applications for the first cohort in November, 2019 and for the second cohort with theme of 'Cross Border Payments' in December, 2020.