The Reserve Bank of India (RBI) launched three major initiatives on 28 May 2024: the PRAVAH portal, a mobile app for retail investors to trade in government securities, and a Fintech Repository. These three initiatives were launched by the RBI governor, Shaktikanta Das, in Mumbai, Maharashtra.
PRAVAH Portal
- The PRAVAAH(Platform for Regulatory Application, VAlidation and AutHorisation) is a centralised web-based portal that provides a secure platform for individuals or entities to seek authorisation, license, or regulatory approval from the Reserve Bank.
- An individual or entity can submit 60 application forms covering different regulatory and supervisory departments of the RBI online.
- Applicants can also track their applications online, monitor their status, and receive a decision from the RBI in a time-bound manner.
Mobile App for Individual investors for trading in Govt securities
- The RBI governor also launched a mobile app for retail investors to buy and sell government securities.
- In 2021, the RBI allowed retail investors to invest in government securities (g-secs) in the primary and secondary markets. The retail investors had to open a Gilt Securities account, namely a Retail Direct Gilt (RDG) account with the RBI.
- In the Primary market, the investor can invest a minimum of Rs 10,000 and a multiple of Rs 10,000 in Central Government Securities (CG), State Government Securities, and Treasury Bills (T-Bills).
- Government securities are bonds issued by the RBI on behalf of the government of India. Bonds are debt-creating instruments that create debt on the issuer.
- If the duration of government securities is less than one year, they are called Treasury Bills (T-Bills). Only the government of India can issue T-bills.
- If the duration of the government securities issued by the government of India is one year or more, they are called dated securities.
- The bonds issued by the state government to borrow from the market are called State Development Loans. The state government can issue only dated securities.
Fintech Repository
- The Fintech Repository will be a storehouse of data on Indian Fintech companies. It will keep essential information about the regulated and unregulated FinTech entities, their activities, technology uses, etc.
- A separate EmTech Repositories is being launched for the Fintechs (Banks and NBFC) regulated by RBI. It will keep the information regarding these fintech adoption of emerging technologies (like Artificial Intelligence, Machine Learning, Cloud Computing, Quantum, etc.),
- The FinTech and EmTech Repositories are secure web-based applications managed by the Reserve Bank Innovation Hub (RBIH), a wholly-owned subsidiary of RBI.
- Fintech, or financial technology, refers to companies that use digital technology to improve the delivery of financial services such as banking, insurance, pensions, etc.