RBI Regulatory Sandbox

Open Innovation or Balancing Act of Risk & innovation

Facilitated by
The Digital Fifth
 Regulatory Sandbox-Overview

 Live testing of new products & services in
Key Points
controlled regulatory environment
 Enable regulator to engage with ecosystem
 Testing of products/services subject to
oversight
 View on benefits & risks of emerging
Benefits
technologies, and regulatory changes needed
to support innovation
 Focus on thrust areas
 Evidence based regulatory decision making

 Provide startups better understanding of

regulations
 Lose on some flexibility and time
Limitations
 No legal waiver

 Case by Case authorizations

 Design Aspects

 Sandbox Cohorts and Product/Services/Technology

- Run few cohorts
- Theme based
- Indicative list of products/services
- Innovative technology suggested

 Regulatory Requirements/Relaxations for Sandbox Applicant

 Exclusions defined from Sandbox testing

- Pre-defined negative list for exclusions
 Regulatory Sandbox-Overview

Framework for test

regulatory environment Not a Test
environment on
Enable better its own
understanding of Focus to provide regulatory
regulations changes needed for new
Closely work with ecosystem led by innovation
regulators
Regulator to engage
with ecosystem
May limit pace of
innovation

Eligibility based on
pre-defined Need to ease of
conditions regulations or govern
regulations
Regulatory
relaxation on case-
to-case basis
 Key Expectations

 Provision for Legal waiver

 More cohorts to be part of program

 Relaxation for negative list for Sandbox participation

 Fitment criteria to include wider range of startups

 Open to solution at nascent stage or conceptualization level

 No restriction of coverage of technologies