OECD: Regulatory Sandbox Toolkit: A Comprehensive Guide for Regulators to Establish and Manage Regulatory Sandboxes Effectively
SDG 9: Industry, Innovation, and Infrastructure
SDG 16: Peace, Justice & Strong Institutions
Institutions: Ministry of Electronics & Information Technology; Securities and Exchange Board of India; Reserve Bank of India
This toolkit offers regulators a structured roadmap for designing, executing, and closing regulatory sandboxes - controlled environments that allow testing of innovative products or services under temporary regulatory flexibility. It outlines a three-phase sandbox lifecycle: (1) Planning and design - including a “Sandbox Test” for tool suitability, stakeholder mapping, risk assessment, and resource planning; (2) Execution - developing testing plans, formalizing legal agreements, managing risks, and ensuring data governance; and (3) Closing and learning - evaluating outcomes, enforcing exit strategies, and capturing lessons.
The toolkit includes practical tools: a Guidebook explaining processes and good practices, a Workbook with diagnostic tests (e.g., legality and suitability checks), and detailed instructions for implementation. It emphasizes regulatory effectiveness through proactive experimentation, iterative design, inclusive stakeholder engagement, and robust evaluation. By embedding such structured sandbox mechanisms, policymakers can support innovation - especially in fintech, digital services, and emerging technologies - while preserving consumer protection and regulatory integrity.
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