The Reserve Bank of India (RBI) is soon planning to frame the regulatory norms for the fintech companies. To initiate the process, RBI’s Governor Shaktikanta Das will be meeting the heads of payments banks later this week in a bid to understand their issues and concerns.
As of now, seven payments banks have started their operations in India. On August 19, 2015, RBI had issued license to 11 payment banks. Airtel Payments Bank is the oldest payment bank in India, followed by India Post Payments Bank (IPPB) and Paytm.
For promoting financial technology in the country, the guidelines on regulatory sandbox will be issued in the next two months, added Das.
A sandbox approach refers to experimenting and learning prior to finally implementing a technology or system. This approach helps in keeping a record of the impact of failures.