Test Phase Of New Retail Payment Products Begins Under RBI’s Regulatory Sandbox
Two entities namely the Natural Support Consultancy Services and the Nucleus Software Exports have begun to test their payments solutions under the Reserve Bank of India’s (RBI) regulatory sandbox framework. This was announced by RBI on November 17, 2020.
Highlights
The Natural Support Consultancy Services has created a near-field-communication (NFC) based retail payments solution. While the Nucleus Software Exports has developed an offline cash product in order to improve e-payments in rural areas.
Retail Payment Solution
The retail payments solution that are being tested under the sandbox include-
- Natural Support Consultancy Services Pvt. Ltd: This payment solution is based in Jaipur. Under this, NFC-based prepaid cards and point-of-sale devices, called ‘eRupaya’ and offline digital payments in remote locations are being developed. The ‘eRupaya’ has been developed to facilitate the offline person-to-merchant transactions
- Nucleus Software Exports Ltd: This payment solution is based in New Delhi. Under offline cash product called ‘PaySe’ will be developed. PaySe will focus on-boarding Self Help Groups (SHG) and digitising the SHG ecosystem to use the offline payments product.
Background
The central bank (RBI) had released the framework for its regulatory sandbox in August 2019. Under the regulatory sandbox, RBI allowed a set of companies to develop and test their products under limited regulatory controls and supervision. The basic aim to create the sandbox is to test a viability of the product without larger and more expensive roll-out. It also provides the regulators an empirical evidence on the benefits and risks of emerging technologies and their implication.