RBI Chooses Five Companies For Product Testing On Regulatory Sandbox

The Reserve Bank of India has chosen five entities, including Indian Banks' Digital Infrastructure Co. and Signzy Technologies, to test the products they have offered under the regulatory sandbox initiative.

Regulatory sandbox refers to live testing of new products or services in a controlled/test regulatory environment, for which regulators may (or may not) permit certain relaxations for the limited purpose of the testing.

The Reserve Bank received 25 applications, of which five have been selected for the Test Phase.

Connectingdot Consultancy, Epifi Technologies and Finagg Technologies are the other entities that will start testing their solutions from August 2024, according to the RBI statement.

The solution of Connectingdot Consultancy aims to provide high accuracy in predicting loan defaults by segregating the loan portfolios into high, medium and low-risk categories.

Epifi Technologies' solution allows the digital opening of Non-Resident (External)/Non-Resident (Ordinary) Accounts through video Know-Your-Customer and identity validations, thus enabling a seamless account opening experience for NRIs.

Finagg Technologies is proposing a blockchain-based, deep-tier vendor financing solution that offers funding to micro, small, and medium enterprises involved in the procurement supply chain of large enterprises, commonly known as anchors.

Indian Banks’ Digital Infrastructure Co. has offered a solution to make easy and affordable credit accessible to lower-tier/small MSMEs.

The solution of Signzy Technologies offers an unassisted video KYC solution that allows users to complete video KYC steps independently without the involvement of officials of regulated entities.

(With Inputs From PTI)