AKP Banking & Finance Digest- March 04, 2024

1. Regulatory Updates

1.1. India

1.1.1. RBI updates regulatory sandbox framework for fintech innovation

The Reserve Bank of India ("RBI") has made updates to its 'Enabling Framework for Regulatory Sandbox', extending timelines for various stages and allowing applicants to form in-principle partnerships before applying. These changes are based on four and a half years of experience, including four cohorts and feedback from fintechs and stakeholders. The revised framework emphasises compliance with the Digital Personal Data Protection Act, 2023. Timelines for the sandbox process have been extended to nine months, and entities can now engage in in-principle partnerships during the application. If a proposed product/service is similar to one previously tested, RBI may exclude it from eligibility. This update is part of RBI's efforts to encourage responsible innovation, enhance efficiency, and benefit consumers in the financial services sector. RBI