India’s financial regulators, Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), Insurance Regulatory and Development Authority of India (IRDAI), and Pension Fund Regulatory and Development Authority (PFRDA), have launched the Inter-operable Regulatory Sandbox (“IoRS”), a unified platform for testing cross-sectoral financial innovations via a single-window mechanism.
“IoRS” streamlines hybrid financial product testing by eliminating the need for separate regulator engagement. It provides a controlled, low-risk environment for innovations like InsurTech, WealthTech, RegTech, SupTech, Digital Payments, Cross-border Transactions and bundled insurance-banking services, minimising risks to consumers and the ecosystem.
Participation is open to FinTechs, startups, financial institutions, RegTech providers and foreign entities via IFSCA. Each product is overseen by a Principal Regulator (PR) based on its dominant feature, with Associate Regulators (ARs) supporting other facets for seamless coordination.
Applications are accepted year-round via the Reserve Bank of India’s FinTech Department (iors@rbi.org.in) using a standard form. There is no application fee, though sandbox fees by the PR may apply. The process includes preliminary RBI review, detailed evaluation by PR and ARs, and testing under the PR’s sandbox framework.
This framework reduces regulatory friction, offers clarity, speeds feedback, enables iterative improvements, and accelerates time-to-market within a safe space. After successful testing, entities must secure approvals before commercial launch. Regulators may publicise successful innovations to encourage adoption.
The notification issued by the authorities are hyperlinked below for your ease of reference.
Source: SEBI | RBI | IRDAI | PFRDA
