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Which one of the following best describes the ‘Regulatory Sandbox’?
- a)It is a live testing of new low-cost financial products.
- b)It is a framework to curb drug racketing across the country.
- c)It is a technology to test adulteration of food products.
- d)It is a single window system to get license for AI startups.
Correct answer is option 'A'. Can you explain this answer?
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Most Upvoted Answer
Which one of the following best describes the ‘Regulatory Sandbo...
Regulatory Sandbox:
Regulatory Sandbox is a regulatory approach that allows fintech startups and other innovators to test their products, services, and business models in a live environment under the regulatory supervision. Here is a detailed explanation of this concept:
Key Points:
- Live Testing: The Regulatory Sandbox offers a safe space for innovators to conduct live testing of new low-cost financial products without the need to fully comply with all regulatory requirements.
- Regulatory Supervision: While operating within the Sandbox, participants are closely monitored by regulatory authorities to ensure consumer protection, financial stability, and regulatory compliance.
- Promoting Innovation: The primary goal of the Regulatory Sandbox is to foster innovation in the financial sector by providing a controlled environment for testing new ideas and solutions.
- Risk Mitigation: By allowing startups to test their products in a limited capacity, the Sandbox helps in identifying potential risks and challenges before a full-scale launch.
- Learning Opportunity: Participants in the Regulatory Sandbox can gain valuable insights into regulatory requirements, market dynamics, and consumer behavior, which can help them refine their products and strategies.
In conclusion, the Regulatory Sandbox is a valuable tool that promotes innovation, mitigates risks, and provides a learning opportunity for fintech startups and innovators in the financial sector.
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Which one of the following best describes the ‘Regulatory Sandbo...
Recently, the Reserve Bank tweaked guidelines for Regulatory Sandbox (RS) scheme.
- It refers to live testing of new products or services in a controlled regulatory environment.
- It acts as a "safe space" for business as the regulators may or may not permit certain relaxations for the limited purpose of testing.
- It can provide a structured avenue for the regulator to engage with the ecosystem and to develop innovation-enabling or innovation-responsive regulations that facilitate delivery of relevant, low-cost financial products.
- It is potentially an important tool which enables more dynamic, evidence-based regulatory environments which learn from, and evolve with, emerging technologies.
- Objectives
- It provides an environment to innovative technology-led entities for limited-scale testing of a new product or service that may or may not involve some relaxation in a regulatory requirement before a wider-scale launch.
- The RS is, at its core, a formal regulatory programme for market participants to test new products, services or business models with customers in a live environment, subject to certain safeguards and oversight.
- The proposed financial service to be launched under the RS should include new or emerging technology, or use of existing technology in an innovative way and should address a problem, or bring benefits to consumers.
- To foster responsible innovation in financial services, promote efficiency and bring benefit to consumers.
- The RBI had issued the 'Enabling Framework for Regulatory Sandbox' in August 2019, after wide ranging consultations with stakeholders.
- The recently updated framework requires
- The sandbox entities to ensure compliance with provisions of the Digital Personal Data Protection Act, 2023.
- The timelines of the various stages of the Regulatory Sandbox process have been revised from seven months to nine months
- The target applicants for entry to the RS are fintech companies, including startups, banks, financial institutions, any other company, Limited Liability Partnership (LLP) and partnership firms, partnering with or providing support to financial services businesses.
Hence option a is the correct answer.
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Which one of the following best describes the ‘Regulatory Sandbox’?a)It is a live testing of new low-cost financial products.b)It is a framework to curb drug racketing across the country.c)It is a technology to test adulteration of food products.d)It is a single window system to get license for AI startups.Correct answer is option 'A'. Can you explain this answer?
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Which one of the following best describes the ‘Regulatory Sandbox’?a)It is a live testing of new low-cost financial products.b)It is a framework to curb drug racketing across the country.c)It is a technology to test adulteration of food products.d)It is a single window system to get license for AI startups.Correct answer is option 'A'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Which one of the following best describes the ‘Regulatory Sandbox’?a)It is a live testing of new low-cost financial products.b)It is a framework to curb drug racketing across the country.c)It is a technology to test adulteration of food products.d)It is a single window system to get license for AI startups.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which one of the following best describes the ‘Regulatory Sandbox’?a)It is a live testing of new low-cost financial products.b)It is a framework to curb drug racketing across the country.c)It is a technology to test adulteration of food products.d)It is a single window system to get license for AI startups.Correct answer is option 'A'. Can you explain this answer?.
Which one of the following best describes the ‘Regulatory Sandbox’?a)It is a live testing of new low-cost financial products.b)It is a framework to curb drug racketing across the country.c)It is a technology to test adulteration of food products.d)It is a single window system to get license for AI startups.Correct answer is option 'A'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Which one of the following best describes the ‘Regulatory Sandbox’?a)It is a live testing of new low-cost financial products.b)It is a framework to curb drug racketing across the country.c)It is a technology to test adulteration of food products.d)It is a single window system to get license for AI startups.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which one of the following best describes the ‘Regulatory Sandbox’?a)It is a live testing of new low-cost financial products.b)It is a framework to curb drug racketing across the country.c)It is a technology to test adulteration of food products.d)It is a single window system to get license for AI startups.Correct answer is option 'A'. Can you explain this answer?.
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