KATHMANDU : Nepal Rastra Bank (NRB) is preparing to release guidelines for a regulatory sandbox aimed at banks, financial institutions, payment service providers, remittance companies, and fintech firms.

This sandbox will allow these entities to test new products and technologies in a controlled environment with relaxed regulatory requirements.

The regulatory sandbox helps reduce legal and operational risks when launching innovative financial services.

It provides exemptions on certain regulations like licensing fees, minimum capital, customer-related obligations, reporting, and advertising during the trial phase.

NRB has published the draft guidelines to seek suggestions from stakeholders before finalizing and implementing the framework.

The move aims to encourage innovation sector.