GS Mains Model Question & Answer : What is Regulatory Sandbox in terms of economy? What are its Benefits? Comment
Q. What is Regulatory Sandbox in terms of economy? What are its Benefits? Comment
What is Regulatory Sandbox in terms of economy? What are its Benefits?
A regulatory sandbox is an experimental oversight mechanism for innovative
products and services that do not fall into an existing regulatory regime or cut
across traditional regulators’ domains. Such innovations are permitted to
operate for a limited period of time at a limited scale to understand its
efficacy and implications, so that the best alternatives for regulation can be
evolved based on concerns that emerge.
The sandbox needs to be designed to adopt this unified consumer-centric lens
through a single integrated sandbox, serving all four financial sector
regulators… technology will always be ahead of regulation like RBI, SEBI, IRDAI,
NITI AAYOG approach this mechanism because India’s financial sectors regulators
hinders ideas in the financial technology sector.
Benefits of Sandbox:
Twin objectives of nurturing financial innovation and safeguarding consumer
Graet way to unlock innovation for mass public adoption .
Will be a boost for Start Up .
Globally regulatory sandboxes have been introduces in the UK , Singapore,
Australia UAE etc.