reserve Bank of India Said application from Indian fintech Foreign fintechs with global ambitions and seeking entry into India will be referred to the International Financial Services Centers Authority (IFSCA) to process the proposals, as IFSCA will be the primary regulator for all such applications.
The regulatory sandbox framework of the regulator, under which the ‘key feature’ of the product falls, will govern it as the ‘key regulator’. The RBI said the regulator under which features other than the key feature of the product fall would be an ‘associate regulator’.
Two sets of factors will be considered or the dominant feature will be decided. Firstly, the type of increase in existing products such as loans, deposits, capital market instruments, insurance, government securities, pension products, etc., and second, the number of exemptions sought by the entity to be tested under IRS.
“The key feature will be determined with higher weighting for the number of relaxations sought,” the banking regulator said.
A regulatory sandbox is a highly controlled environment provided by a central financial body to fintech/financial institutions to test new concepts and innovations before launching them to the majority of the public.
The regulator said that its fintech department will act as the nodal point for receiving applications under it. The Standard Operating Procedure was prepared by the Inter-Regulatory Technical Group on Fintech.