Inter-regulatory push for the sandbox initiative: Check details here

In a fresh push for the sandbox initiative, domestic regulators Sebi, RBI, IRDAI, IFSCA and PFRDA have come together to allow an inter-operable regulatory sandbox.A regulatory sandbox is a framework that allows live experiments in a controlled environment under a regulator's supervision. 

"In order to facilitate testing of innovative products/services falling within the regulatory ambit of more than one financial sector regulators viz. RBI, Sebi, IRDAI, IFSCA and PFRDA, a Standard Operating Procedure (SOP) for IoRS has been prepared by the Inter-Regulatory Technical Group on FinTech,” said Sebi in its statement.

Based on the dominant features of the product, the eligibility criteria and networth criteria as applicable for the sandbox of the principal regulator will be applicable. The regulator/s under whose remit the other features apart from the dominant feature of the product fall will be the Associate Regulator.

Applicants will have to state the regulatory relaxations that they seek from the regulators and the expected use cases of the product, service or technology that they intend to test.

The Fintech department of the RBI will act as a nodal point for receiving applications under this initiative.