The Reserve Bank of India has announced the initiation of the test phase for the fifth cohort of its regulatory sandbox, following the announcement made in October 2023. This cohort, characterized by its theme-neutral stance, received a total of 22 applications, out of which five have been selected for testing their innovative solutions starting August 2024.
The selected entities and their solutions are as follows:
Connectingdot Consultancy Private Limited: The solution aims to provide high accuracy in predicting loan defaults by segregating the loan portfolios into high, medium and low risk categories. It provides reasons for borrower’s default and recommends borrower specific pathways to banks/lenders for improving risk mitigation.
Epifi Technologies Private Limited: The solution allows for digital opening of NRE/NRO accounts through video KYC and identity validations, thus enabling a seamless account opening experience for NRIs. It is expected to bring in efficiency by reducing cost, turnaround time, and obviating the need for physical documentation and verification.
Finagg Technologies: The solution is a blockchain based deep tier vendor financing solution that enables financing for MSMEs, which are part of the procurement supply chain of large enterprises commonly referred to as anchors. It enables conversion of receivables from anchors into blockchain based tokens which can be redeemed by MSMEs for availing credit from banks/ NBFCs. The solution aims to make easy and affordable credit accessible to lower tier/ small MSMEs.
Indian Banks’ Digital Infrastructure Company (IBDIC): The deep tier financing solution powered by blockchain and smart contract enables MSMEs, which are part of the supply chain of a creditworthy anchor to get access to affordable finance linked to their value addition. OEM invoice accepted by the anchor is tokenised and the platform facilitates the transfer of these tokens by the buyer to the seller in lieu of payment for the accepted invoice. Lenders fund the supplier against these tokens digitally on this platform. The solution aims to make easy and affordable credit accessible to lower tier/ small MSMEs.
Signzy Technologies: The solution offers an unassisted video KYC solution that allows users to complete video KYC steps independently without involvement of officials of regulated entities. It envisages to reduce time, increase success rates, significantly lower customer drop-offs and ensure a seamless and efficient KYC experience for both customers and regulated entities.
