The Reserve Bank of India is expected to issue guidelines for the setting up of a regulatory sandbox for promoting innovation in the fintech space. This will happen in the next 2 months, the governor of RBI Shaktikanta Das said. He said at an event the sandbox would benefit fintech companies by way of reduced time to launch innovative products at a lower cost. The RBI’s working group on fintech and digital banking had mooted the setting up of a regulatory sandbox/innovation hub within a well-defined space and duration to experiment with fintech solutions. The governor said fintechs have the potential to reshape the financial services and financial inclusion landscape in India in fundamental ways and they can reduce costs and improve access and quality of financial services. Das also said the RBI has encouraged banks to explore the possibility of establishing new alliances with fintech firms as it could be pivotal in accelerating the agenda of financial inclusion through innovation.
