RBI Introduces Regulatory Sandbox to Test Offline Digital Payment Solutions. Banking & Finance | Dated: 06 Feb 2025 In January 2025, the Reserve Bank of India (RBI) launched a Regulatory Sandbox (RS) to test the "On Tap" application under the theme of 'Retail Payments.' 🎯 Key Highlights: - Chennai (Tamil Nadu) based Exto India Technologies Private Limited was chosen to participate in the 'Test Phase' of this project. 💡 Other Important Facts: (i) The company tested an offline digital payment solution that uses Distributed Ledger Technology (DLT) and private biometric authorization, allowing card-to-card and card-to-phone transactions without internet. (ii) The key features of this innovation include using cryptography in distributed ledgers, on-card biometric authentication, and time-limited balances, which helps prevent problems like double spending. (iii) After testing, the product was found to be acceptable under the Regulatory Sandbox (RS) and may be adopted by regulated entities, as long as they comply with the necessary regulatory requirements. 📚 Test Your Knowledge: Which organization recently introduced a Regulatory Sandbox to test offline digital payment solutions? Correct Answer: RBI 🚀 Quick Recap: