RBI Launches Trio Of Initiatives To Boost Financial Services

Posted On - 14 June, 2024 • By - King Stubb & Kasiva

The Reserve Bank of India (“RBI”) acts as the central bank and is responsible for maintaining financial stability. This includes regulating various financial institutions like banks, non-banking financial companies, and payment systems. To ensure the smooth functioning and evolution of the financial sector, the RBI regularly introduces policies and initiatives.

On May 28^th, 2024, the RBI, unveiled three major initiatives – PRAVAAH, RBI Retail Direct Mobile Application and FinTech Repository.^[1] These initiatives aim to streamline processes, enhance accessibility, and foster a data-driven approach within the financial services domain.

Three Initiatives by RBI

PRAVAAH Portal (Platform for Regulatory Application, VAlidation and AutHorisation)

The RBI launched the PRAVAAH portal, a centralized online platform aimed at streamlining the application process for various regulatory approvals and clearances. This secure web-based portal offers several key features, including:

Online Application Submission: Individuals and entities can submit applications electronically for various regulatory requirements.
Status Tracking and Monitoring: Applicants can conveniently track the progress of their applications and receive updates.
Respond to Clarifications: The portal facilitates communication between applicants and the RBI for any clarifications or queries.
Time-Bound Decisions: The RBI aims to provide decisions on applications within a defined timeframe.

Currently, the PRAVAAH portal offers a comprehensive set of 60 application forms covering diverse regulatory and supervisory departments of the RBI.^[2] The portal also includes a general form for requests not covered by specific application types. With a commitment to continuous improvement, the RBI plans to expand the range of applications available on the platform in the future. You can access the PRAVAAH portal at https://pravaah.rbi.org.in.

RBI Retail Direct Mobile App

In November 2021, the RBI introduced the Retail Direct scheme.^[3] This enabled retail investors to conveniently open Government Securities (“G-Sec”) accounts directly with the RBI. Building upon this initiative, the RBI has launched a dedicated mobile application for the Retail Direct platform. This app empowers retail investors to seamlessly buy and sell G-Secs through their smartphones, offering greater ease and accessibility for G-Sec transactions.

FinTech Repository and EmTech Repository

The RBI has established the FinTech Repository to gather crucial information about Indian FinTech entities, their activities, and the technologies they employ. This repository will encompass data from both regulated and unregulated FinTech players. FinTech entities are encouraged to contribute their details to the repository, accessible at https://fintechrepository.rbihub.in.

Complementing the FinTech Repository, the RBI has also launched the EmTech Repository. This repository focuses on capturing data on the adoption of emerging technologies (like Artificial Intelligence, Machine Learning, Cloud Computing, etc.) by RBI-regulated entities, including banks and NBFCs. You can access the EmTech Repository at https://emtechrepository.rbihub.in.

Both the FinTech and EmTech Repositories are secure web-based applications managed by the RBI Innovation Hub (“RBIH”), a wholly-owned subsidiary of the RBI. The data collected through these repositories will provide valuable insights for policymakers. This would enable them to make informed decisions regarding the financial sector. Industry participants will also benefit from the repository data, gaining a clearer understanding of the overall FinTech ecosystem and technology adoption trends.

Conclusion

These three initiatives by the RBI collectively aim to enhance efficiency, accessibility, and data-driven decision-making within the financial sector. The PRAVAAH portal streamlines regulatory applications, while the Retail Direct Mobile App simplifies G-Sec transactions for retail investors. The FinTech and EmTech Repositories, in turn, will provide valuable data for both policymakers and industry participants.

The RBI actively encourages FinTech entities, both regulated and unregulated, to contribute to the FinTech Repository. Similarly, RBI-regulated entities are urged to participate in the EmTech Repository. By actively engaging with these initiatives, stakeholders can contribute to a more informed and efficient financial ecosystem.

^[1] https://rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=57990.

^[2] https://rbidocs.rbi.org.in/rdocs/content/pdfs/PR393PRAVAAH28052024.pdf.

^[3] https://rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=52548.

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