THsr01@ ‘The RBI sandbox for rtech: All you need to know. Business News Business Today sen a The RBI sandbox for fintech: All you need to know “esa ot only protect thea’ car hain lation (CB) tallow CBS | Endet navn or rings podnova mse DAILY NEWSLETTER Get our best delivered to your inbox Enter Your Name What is a sandbox? A sandbox is often mentioned in the context of financial over Your Eat technologies companies or fintechs. It is an enabling * infrastructure or interface, which is made available to an wa cea ewe outside innovator or fintech by a bank, so that they can test agree to receive newsletters and Bene win their product and services. The sandbox not only protects the _syaungconmanazens tom a bank's core banking solution (CBS), which is the backbone of a bank or a financial institution, but also allows a CBS kind of, interface for testing a product in a scalable manner. This live testing reduces time to market and also allows a room for Sonn sen Secrest (eae vy htpswwu-businosstoday infcurrt/economy-palits/ne-i-sandbox-for-inloch-al-you-need-to-know/story(339544 riml wsTHsr01@ “The RBI sandbox for rtech All you need to know. Business News ‘some were of view that eventually banks would become irrelevant or these new technology companies would disrupt the banking business. Today, many large banks are engaging with hundreds of fintechs for servicing their customers better ‘The success of current partnerships has come about as these fechs first created a commercially successful produet and then banks accepted them, However, there are many new fintech companies around, who have innovative products but they want to test it with banks initially to assess the success. A. sandbox kind of an environment would allow this to happen in seamless manner. Under Siege? Budget 2019: Moma (obanesteres Regulatory framework Globally, there are regulators that have allowed sandbox, interface to innovators by allowing banks and financial, institutions to share customer data with them in a secure environment. The RBI recently said that it would be shortly allowing sandbox in India by creating a regulatory and supervisory framework for the banks and institutions. A regulatory relief would encourage a good ecosystem for fintechs to test their products live with the customers and also address the security concerns of bankers. Once approved, these products would go live for customers. Concerns about sandbox ‘The customer's privacy and data protection are some of the key issues when it comes to sandbox. The customer's data is very important and any leakages not only mean a loss of reputation but can also result in law suits for the bank or financial institution. The security is yet another concern as banks are exposing their systems to start-ups or innovators, which are not regulated by any entity. These start-ups may or may not survive tomorrow, so the question is who will ensure the safety of the data? Also read: Sandboxing Fintechs {BI reserves: Jalan panel may line up Rs 3 lakh er DO YOU LIKE THIS STORY? trio Seitz sere Ets ina Management sconce | ‘Budget 209: Soil Stace = [Exchange may see a chicken. ancegg sonar, Dream On Budget Thistssue|allissues MUST READ TECH NEWS Lok Sabha Budget Session: PM Modi to addres parliament in a note of, ‘thanks to Presidents ‘aderess today Careful drivers! New bill proposes RS 10,000 for drunk driving, Rs §,000 for speeding India, U.S. nearing sn B34 incustial security pac. “9 LEM dotence tech ‘ransfersindia, U.S. nearing industrial security pact for defence tech transfers Us Secretary of State Mike Pompeo to arrive in india ai (EM car ivey oascuss Mawaot parson seule Kabir Sing Boxoffce Colon Day chan Kapoor ar van starrer likely to enter Rs 100 crore club soon You May Like 12 Month PG Diploma in Block Technology & Management Bus falls off Yamuna Expressway in Agra killing 29, as driver dozes off News Reel How Good An Investment is the PG Diploma in Data Science ‘eT Buzz: Trade US rtaltion 20 gee en -ups:shwwn businasstoday n/curerUeconomy plicsitne--sandbox-ferfintach-al-you-neaé-o-know/story/338544.himl 2s