RBI unveils Pravaah portal, Retail Direct Mobile App and FinTech Repository

The Reserve Bank of India (RBI) Governor recently announced 3 major initiatives aiming to enhance regulatory efficiency and facilitate retail investors' engagement in government securities.

1. These initiatives include the Pravaah portal, the Retail Direct Mobile App, and a FinTech Repository.

Pravaah Portal:

1. Purpose: The Pravaah portal (Platform for Regulatory Application, Validation, and Authorization) is a secure and centralized web-based platform that allows individuals and entities to seek authorization, license, or regulatory approval from the RBI for various matters.
2. Key Features:
   1. Online application submission
   2. Real-time tracking of application status
   3. Responding to clarifications sought by the RBI
   4. Time-bound decision from the RBI
3. Benefits:
   1. Enhanced efficiency in granting regulatory approvals and clearances by the RBI
   2. Reduced processing time and improved transparency
4. Coverage:
   1. Initially, 60 application forms covering different regulatory and supervisory departments of RBI are available on the portal.
   2. A general-purpose form is also included for requests not covered by specific application forms.

Retail Direct Mobile App:

1. Background: The Retail Direct portal was launched in November 2021 to enable retail investors to open Retail Direct Gilt accounts with the RBI under the Retail Direct Scheme.
2. New Development: The launch of the Retail Direct Mobile App allows retail investors to transact in government securities (G-Secs) conveniently using their smartphones.

FinTech Repository:

1. Objective: The FinTech Repository aims to capture essential information about FinTech entities, including their activities, technology uses, and regulatory status.
2. Data Coverage:
   1. Includes both regulated and unregulated FinTechs
   2. Provides a comprehensive repository of data on Indian FinTech firms
3. Benefits:
   1. Facilitates better understanding of the FinTech sector
   2. Useful for policymakers and industry participants
4. Management:
   1. The FinTech Repository is a secure web-based application managed by the Reserve Bank Innovation Hub (RBIH), a wholly-owned subsidiary of RBI.

What are G-Secs (Government Securities) ?

1. Explanation: A Government Security (G-Sec) is a tradable instrument issued by the Central or State Governments, acknowledging the government's debt obligation.
2. G-Secs can be short-term (treasury bills) or long-term (government bonds or dated securities).
3. They carry minimal risk of default and are considered risk-free gilt-edged instruments.

 

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