The Insurance Regulatory and Development Authority of India has released a set of FAQs on the Inter-Operable Regulatory Sandbox (IoRS) to encourage tech-driven innovation in financial services.
With a view to encouraging tech-driven innovation, the Insurance Regulatory and Development Authority of India (IRDAI) has released a set of Frequently Asked Questions (FAQs) on the Inter-operable Regulatory Sandbox (IoRS).
IoRS provides a common window for innovators to test hybrid financial products/ services falling within the regulatory ambit of more than one financial sector regulator. By eliminating the need to separately engage with different regulators, it simplifies testing processes and fosters innovation in the financial ecosystem.
IoRS allows the testing of financial products or services whose features fall within the remit of more than one financial sector regulator (RBI, SEBI, IRDAI, PFRDA and IFSCA). Some of these innovative solutions include RegTech and SupTech, Digital Payment Solutions, Cross-sectoral products (e.g., insurance products linked to banking services), InsurTech, WealthTech, and Cross-Border payment solutions.
FinTech, InsurTech, and WealthTech firms can participate year-round
Financial institutions, FinTech companies, RegTech providers, Start-ups or other innovators offering products/services relevant to multiple financial sectors can participate in the IoRS to showcase their innovative products. There is no deadline, and applications are accepted on an ‘On-Tap’ basis throughout the year, IRDAI said.
IRTG on FinTech drafts SOP to streamline hybrid product testing
An Inter-Regulatory Technical Group on FinTech (IRTG on FinTech) was constituted under the aegis of the Financial Stability and Development Council-Sub Committee (FSDC-SC). The terms of reference (ToR) of IRTG on FinTech included discussions on issues relating to hybrid products/services that fall under the regulatory ambit of more than one financial sector regulator for admission in the Regulatory Sandbox and the framing of a Standard Operating Procedure (SOP) for IoRS for such hybrid products/services.
The group, in addition to the members from Financial Sector Regulators/Authority (RBI, SEBI, IRDAI, IFSCA, and PFRDA), has representation from the Department of Economic Affairs (DEA), the Ministry of Finance, and the Ministry of Electronics and Information Technology (MeITY), GoI.
In order to facilitate testing of innovative products/services falling within the regulatory ambit of more than one financial sector regulator, a Standard Operating Procedure (SOP) for IoRS has been prepared by the Inter-Regulatory Technical Group on FinTech (IRTG on FinTech).
Published on September 19, 2025