On January 5, 2023, the Reserve Bank of India (RBI) had selected six entities out of nine applications for the Test Phase under the 4th cohort of Regulatory Sandbox (RS) on the theme ‘Prevention and Mitigation of Financial Frauds’.
- The selected entities will commence testing of their products on Anti-Fraud Solutions from February 2023.
- The 4th cohort under RS was announced in June 2022.
Selected entities & their Products:
i.Bahwan Cybertek
Product: rt360 Real Time Monitoring System
Product Description: It provides a surveillance mechanism for monitoring transactions and events from loan accounts on a continuous and real time basis.
Headquarter– Chennai, Tamil Nadu
ii.Crediwatch Information Analytics
Product:Â Crediwatch EWS
Product Description: It is an early warning system for credit monitoring and fraud identification that looks at data across public and private data sources to uncover early signs of trouble for commercial borrowers
Headquarter– Bengaluru, Karnataka
iii.enStage Software Private Limited (Wibmo)
Product:Â Trident FRM
Product Description:Â It is a risk-based authentication solution aimed at providing frictionless i.e. without OTP (One Time Password) transaction experience for low value transactions based on risk assessment of users.
Headquarter– Bengaluru, Karnataka
iv.HSBCÂ in collaboration with Wibmo
Product Description: It is a closed user group AI/ML (Artificial Intelligence/Machine Learning) based solution which helps in card-not-present fraud detection by using historical transactions and contextual information from collaborated banks and financial institutions.
HSBC India Headquarters– Mumbai, Maharashtra
v.napIDÂ Cybersec
Product:Â napID Fraud Filter Layer
Product Description: It locks the login form, payment form, ATM (Automated Teller Machine), POS (Point of Sale) machines. It gets unlocked for the authorized user to initiate the transaction using their credentials via napID Zero-Factor Authenticator app.
Headquarter– Chennai, Tamil Nadu
vi.Trusting Social
Product: Trusting Social CI & AV
Product Description: It helps in address verification by running its proprietary AI algorithms on non-personally identifiable data on subscriber usage, location signals, among others to predict residential and office address of users. This helps to verify the accuracy of address declared by prospective customers, and assess the risk of default of a loan applicant.
Headquarter India– Mumbai, Maharashtra
Global Headquarter– Singapore
About Regulatory Sandbox (RS):
- The RS was established on August 13, 2019 based on the recommendations of the Working Group on FinTech and Digital Banking, set up by Financial Stability and Development Council – Sub Committee (FSDC-SC).
- It refers to the live testing of new products or services in a controlled/test regulatory environment. Through this field tests are conducted on the advantages and drawbacks of the new financial innovations.
- The target applicants for entry to the RS are fintech companies, including startups, banks, financial institutions, any other company and Limited Liability Partnerships (LLPs) and partnership firms, partnering with or providing support to financial services businesses.
The Previous 4 Cohorts under RS are:
- First- Retail Payments
- Second- Cross Border Payments
- Third- MSME lending
- Fourth- Prevention and Mitigation of Financial Frauds
RBI announced the 5th Cohort under RS which will be themed ‘Neutral’ in September 2022.
Recent Related News:
i.RBI has launched the pilot for end-to-end digitalization of Kisan Credit Card (KCC) lending.. The project was developed by the Reserve Bank Innovation Hub (RBIH) in association with RBI.
ii.RBI raised the minimum capital requirement for setting up an asset reconstruction company (ARC) to Rs 300 crore from the existing Rs 100 crore. The existing ARCs are need to meet minimum net owned fund (NOF) requirement of Rs 200 crore by March 31, 2024, and Rs 300 crore by March 31, 2026.
About Reserve Bank of India (RBI):
i.The Reserve Bank of India was established on April 1, 1935, in accordance with the provisions of the RBI Act, 1934.
ii.The Central Office of the Reserve Bank was initially established in Calcutta but was permanently moved to Mumbai in 1937.
iii.Though originally privately owned, since nationalization in 1949, the Reserve Bank is fully owned by the Government of India.
