Regulatory Sandbox
A controlled program run by a regulator that lets startups test innovative products, often in fintech, with real customers under relaxed rules and close supervision, before full authorization.
Why it matters
Sandboxes let startups in heavily regulated sectors validate ideas without first clearing every rule, lowering the barrier to innovate. For fintech and similar founders, using one can be the difference between testing legally and not at all.
For example
A payments startup tests a new product with real customers under the RBI's regulatory sandbox, operating under relaxed rules and close supervision.
Go deeper
Related terms
Also in Starting Up
See how founders actually handle this on Co-founders, team and legal, part of the Starting Up hub.
eChai Partner Brands
