Latest News
-
IRCTC vs Cochin Shipyard: Which PSU Stock Has Higher Upside Potential? Sumeet Bagadia Answers -
Swing Trading Guide: 3 Stock Picks By VLA Ambala On Wednesday, April 24 -
Indian Railway Finance Corp (IRFC): Top NBFC Railway Stock Advised To BUY; Short-To-Long Term Target Prices -
2 Multibagger Defence To Shield Your Money, Buy On April 24; Prabhudas Sets Target Prices, Stop Loss -
Rs 3.5/Share Dividend Declared: NBFC Declares 55.5% YoY Surge In PAT, Shares Up 87% In 1-Yr -
Rs 118/Share Dividend: Healthcare Stock Below Rs 400 Turned Ex-Dividend, Payout Soon; Buy For Rs 515 Target -
6,693% Returns: Below Rs 75, Pharma Penny Stock Ex-Dividend For Rs 40/Sh Payout After 9 Years; Do You Own? -
TCS Vs Infosys Vs Wipro Shares, ADRs, Upcoming Dividends: Which Mega IT Stocks To Buy After Q4 Results? -
SBI Card Launches 3 New Variants of Its Travel Credit Card ‘SBI Card MILES’ -
25% Dividend Record Date: Logistic Stock Nears 1-Year High And It Belongs To Mahindra; Motilal Neutral
What Is RBI's Sandbox For Fintechs?
These days we quite often come across the term 'Sandbox' in business dailies. So what it is exactly? Here we will elaborate on the interface provided to fintechs or financial technologies companies.
All about Sandbox
Sandbox is an interface or infrastructure provided by banks to fintech organizations to enable them to test their products and services. The platform allows a CBS-kind of interface to test a product scalably and at the same time also lends protection to the bank's core banking system or CBS platform that happens to be the heart and soul of any bank or financial entity.
Aided by the interface, this testing on a real time basis helps in reducing time for marketing the product and also provides room for any kind of failure, without actually launching it commercially.
Regulatory framework
After the RBI said that it will develop a regulatory framework for banks and financial entities for allowing sandbox in India, the apex bank unveiled its 'draft enabling framework for regulatory sandbox' (RS) over the weekend.
The framework comes after the working group stressed its requirement for managing risks, increasing efficiency and developing new services and opportunities for customers. Nonetheless, the draft regulatory framework for sandbox lags or is cited to be vague in respect of data protection and customer privacy, which are its main concern areas.
Also, internationally, sandbox platform is made available to innovators or fintech companies by regulators by allowing banks and financial entities to share crucial customer data with them in a safe ecosystem.
Sandbox and its significance
The role of sandbox like environment comes into play now all the more as there have evolved many such new fintech companies, which first wish to test their innovative products with the bank to know their possible success. And the presence of such an ecosystem will enable it in a seamless way and after live testing of the product is completed by the innovator company, it is made live for consumers upon approval.
GoodReturns.in
