Indian regulators have set out to launch a fintech regulatory sandbox framework designed with a vision to help firms experiment in a live environment.
The sandbox facilitates established players and start-ups in the capital markets, banking, and insurance sectors to test services and products in a live environment along with a limited number of real customers for a set time frame.
Besides, an innovation sandbox will let fintech firms test their technology in isolation from the live market but based on real market-related data.
The International Financial Services Centres Authority (IFSCA), initiated by the Indian government, runs the sandbox.
In an Indian smart city in Gandhinagar called the Gujarat International Finance Tec (Gift) City, the IFSCA was tasked by creating a world-class Fintech center. In Gift City, the new sandbox will run within the IFSCA.
India is developing a world-class fintech hub at GIFT and moving toward the adoption of digital assets.