3 entities complete test phase of RBI regulatory sandboxs fourth cohort

The Reserve Bank of India (RBI) announced the completion of the test phase for the fourth cohort of its Regulatory Sandbox focused on 'Prevention and Mitigation of Financial Frauds'. Out of six selected applications in January 2023, products from three entities—Bahwan Cybertek, napID Cybersec, and Trusting Social—successfully exited the sandbox.\r

These products include transaction monitoring for banks, transaction authorization, and assessment of default risk for loan applicants. RBI stated that products meeting the cohort's criteria could potentially be adopted by regulated entities, pending compliance with regulatory norms. \r

The sandbox facilitates controlled testing of new financial innovations, providing regulators and stakeholders with insights into both benefits and risks, and is now accepting 'on-tap' applications for its next cohort.