RBI proposed Fintech Startups to use Regulatory Sandbox

The Reserve Bank of India (RBI)  will issue guidelines for fintech companies to beta test their products on a small group of users within the next two months.

The sandbox will allow companies to test the product without the burden of an exhaustive wider roll-out.

The sandbox will work as a tool to safeguard the stakeholders and the customers.

It will also streamline the influence these companies will have on the financial system.

The governor pointed out the need for a regulatory and supervisory system for fintech companies.

The retail electronic payments have gone up by 900% in the last five years.

This led the BJP government to increase the effort to develop payments infrastructure and technology platforms such as Immediate Payments Services (IMPS), Unified Payment Interface (UPI), and Bharat Interface for Money (BHIM).

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