Fi.Money, FinAGG & Signzy Selected For RBI Regulatory Sandbox

The theme-neutral cohort will look to incubate innovative products or services across various functions under the RBI’s regulatory domain

The five entities were shortlisted for the “test phase” from 22 applications, and will commence testing of their solutions from next month

Regulatory sandboxes enable companies to test new products or services in a controlled regulatory environment

The Reserve Bank of India (RBI) has selected five entities, including three startups, for its fifth cohort of the regulatory sandbox initiative.

The selected startups include Epifi Technologies (Fi.Money), Finagg Technologies (FinAGG) and Signzy Technologies. Besides, Connectingdot Consultancy and Indian Banks’ Digital Infrastructure Company (IBDIC) have also been selected for the project.

For the uninitiated, regulatory sandboxes enable companies to test new products or services in a controlled regulatory environment. This, in turn, allows these entities to scale up their offerings, bring efficiency and devise solutions for new-age problems.

The theme-neutral cohort will look to incubate “innovative” products or services across various functions under RBI’s regulatory domain. In a statement, the central bank said that the five entities were shortlisted for the “test phase” from the 22 applications received by it.

It also said that the selected entities will commence testing of their solutions from next month.

Under the sandbox initiative, Epifi Technologies will develop a solution for digital opening of non-resident (external) and non-resident (ordinary) accounts through video KYC and “identity validations”.

The central bank said that Epifi’s proposed tool will enable a seamless account opening experience for NRIs by observing the need for physical documentation and verification. It also said that the offering will bring efficiency as well as reduce cost and turnaround time.

Meanwhile, FinAGG will build a blockchain-based “deep tier vendor financing” solution that will enable financing for MSMEs in the procurement supply chain of large enterprises. The offering will allow conversion of receipts from these enterprises into blockchain-based tokens that can be redeemed by MSMEs for availing credit from banks and NBFCs.

Additionally, Signzy will look to develop an unassisted video-KYC solution that will allow users to complete video KYC steps independently without human intervention.

“The solution (of Signzy) envisages to reduce time, increase success rates, significantly lower customer drop-offs and ensure a seamless and efficient KYC experience for both customers and regulated entities,” added the statement.

The RBI invited applications from eligible entities to participate in the fifth cohort of the sandbox initiative in September 2023.

The central bank invited applications for the first cohort on the ‘retail payments’ theme in late-2019. It was followed by the selection of a cross-border payments-centered second cohort in December 2020.

Afterwards, the third cohort was announced in September 2021 on the theme ‘MSME lending’. Subsequently, the central bank also selected six fintech startups, including Bahwan Cybertek, Crediwatch Information Analytics, and Wibmo, as part of its fourth cohort of the regulatory sandbox initiative last year.

The sandbox project has paved the way for the emergence of startups like ToneTag, Citycash, and IND-e-Cash for use cases such as sound-based UPI payments and digital payments for feature phones.