The central bank had earlier selected four entities for the test phase of the second cohort. Cashfree Payments India, Fairex Solutions, Nearby Technologies and Open Financial Technologies completed the test phase of the cohort in July 2022.
A regulatory sandbox is live testing of new products or services on a pilot basis with some relaxations for the limited purpose of the testing, after which the RBI invites an ‘on tap’ application based on the experience gained and the feedback received from stakeholders.
In the second cohort, Cashfree Payments submitted a product which extended a cross-border payment platform to facilitate the purchase of assets listed on foreign exchanges by domestic investors via local payment methods.
Fairex Solutions’ product provided an aggregation platform of leading cross-border payment providers for outward remittance while that of Nearby Technologies allowed routing the inward cross-border remittance to the beneficiary’s Aadhaar number as a virtual bank account using the existing Rupee Drawing Arrangement (RDA) mechanism.
Lastly, Open Financial Technologies’ product included a blockchain-based cross-border payment system, leveraging the current infrastructure while ensuring tamperproof monitoring capabilities.
Separately, the RBI has also launched the fifth cohort under the regulatory sandbox, which will not have a specific theme. The central bank has invited applications for innovative products, services and technologies related to its regulatory domain.
“Innovative products, services and technologies cutting across various functions in RBI’s regulatory domain would be eligible to apply. The application window for the same shall be communicated in due course,” the central bank said.