'Regulatory sandbox' norms for fintech firms in 2 months: Shaktikanta Das

Das said the RBI encouraged banks to explore new alliances with fintech firms as it could be pivotal in accelerating the agenda of financial inclusion

The central bank is set to issue guidelines for a ‘regulatory sandbox’ for financial technology (fintech) firms within two months, Reserve Bank of India Governor Shaktikanta Das said on Monday.

A sandbox approach provides a secure environment for fintech firms to experiment with products under supervision of a regulator. “Such frameworks should address associated risks while keeping in mind the growth requirements of this sector… A regulatory sandbox would benefit fintech companies by way of reduced time to launch innovative products at a lower cost,” Das said.

The RBI governor said consultations with stakeholders will be initiated in the next fortnight and