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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...
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 Sandbo...
Regulatory Sandbox:
The Regulatory Sandbox is a framework that allows fintech startups and other innovators to test new financial products, services, and business models in a controlled environment. It is a live testing environment where regulations are temporarily relaxed to enable experimentation and innovation without the usual regulatory constraints.
Key Features:
- The Regulatory Sandbox provides a safe space for innovators to test their products and services with real customers without the risk of non-compliance with existing regulations.
- It helps regulators to understand the potential risks and benefits of new technologies and business models before fully implementing them.
- The Regulatory Sandbox promotes innovation in the financial sector by allowing startups to test their ideas and gather feedback from users in a controlled environment.
Benefits:
- Encourages innovation: The Regulatory Sandbox encourages fintech startups to come up with new ideas and solutions to financial problems.
- Protects consumers: By allowing startups to test their products in a controlled environment, the Regulatory Sandbox helps protect consumers from potential risks.
- Improves regulatory framework: The insights gained from the Regulatory Sandbox can help regulators to improve the regulatory framework and adapt to the changing financial landscape.
In conclusion, the Regulatory Sandbox is an important tool for promoting innovation in the financial sector while ensuring consumer protection and regulatory compliance.
The Regulatory Sandbox is a framework that allows fintech startups and other innovators to test new financial products, services, and business models in a controlled environment. It is a live testing environment where regulations are temporarily relaxed to enable experimentation and innovation without the usual regulatory constraints.
Key Features:
- The Regulatory Sandbox provides a safe space for innovators to test their products and services with real customers without the risk of non-compliance with existing regulations.
- It helps regulators to understand the potential risks and benefits of new technologies and business models before fully implementing them.
- The Regulatory Sandbox promotes innovation in the financial sector by allowing startups to test their ideas and gather feedback from users in a controlled environment.
Benefits:
- Encourages innovation: The Regulatory Sandbox encourages fintech startups to come up with new ideas and solutions to financial problems.
- Protects consumers: By allowing startups to test their products in a controlled environment, the Regulatory Sandbox helps protect consumers from potential risks.
- Improves regulatory framework: The insights gained from the Regulatory Sandbox can help regulators to improve the regulatory framework and adapt to the changing financial landscape.
In conclusion, the Regulatory Sandbox is an important tool for promoting innovation in the financial sector while ensuring consumer protection and regulatory compliance.
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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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