Six entities get nod to test products for curbing frauds
Mumbai, January 5
Six entities, including HSBC and Creditwatch, have been allowed to test their fintech products to prevent and mitigate financial fraud as part of the fourth cohort under the RBI’s regulatory sandbox scheme.
Regulatory sandbox refers to the live testing of new products or services in a controlled/test regulatory environment for which the regulators may permit certain relaxations.
Sandbox scheme
- Regulatory sandbox refers to the live testing of new products or services in a controlled/test regulatory environment for which the regulators may permit certain relaxations
- The RBI announced the opening of the fourth cohort under the regulatory sandbox in June 2022 for the prevention and mitigation of financial fraud
The RBI announced the opening of the fourth cohort under the regulatory sandbox in June 2022 for the prevention and mitigation of financial fraud. The RBI said it had received nine applications under the fourth cohort, of which six entities have been selected for the ‘test phase’.
The six entities are — Bahwan Cybertek, Crediwatch Information Analytics, enStage Software (Wibmo), HSBC in collaboration with Wibmo, napID Cybersec and Trusting Social.
The selected entities would commence testing in February. The applications for the fourth cohort were received from June 15 to August 1, 2022.
The regulatory sandbox allows the regulator, innovators, financial service providers and customers to conduct field tests to collect evidence on the benefits and risks of new financial products.
