Fintech Startup

RBI Rolls out the PRAVAAH Portal, Retail Direct Mobile App and FinTech Repository

These three initiatives were previously announced in the RBI’s bi-monthly statements on development and regulatory policies in April 2023, December 2023 and April 2024. This initiative aligns with the Union Budget 2023-24 announcement, which emphasized the need for financial sector regulators to simplify, streamline, reduce compliance costs, and ensure applications are decided within the specified time limits.

Understanding About the PRAVAAH Portal

The RBI has launched a secure, web-based centralized portal named PRAVAAH (Platform for Regulatory Application, VAlidation and AutHorisation), which aims to simplify and streamline application processes.

The PRAVAAH portal will provide a convenient online platform for individuals and entities to apply for regulatory approvals seamlessly. It is launched as a secure web-based centralized portal that will display the time limits for a decision on an application submitted to RBI across all functions, including approval, enhancing regulatory efficiency to facilitate the ease of doing business for entities regulated by the RBI.  

The portal can be accessed at https://pravaah.rbi.org.in/and currently, the PRAVAAH Portal offers 60 application forms covering various regulatory and supervisory departments of the RBI. It also includes a general-purpose form for applicants to submit requests not covered by other forms.

Purpose of the PRAVAAH Portal

The PRAVAAH portal is designed to streamline and simplify the application processes, licensing, and approval process to enable individuals and entities to apply for regulatory approval and clearance from the RBI. It aims to enhance the ease of doing business for regulated entities by providing a centralized, secure and web-based platform for submitting and tracking applications so that all references and requests to the RBI can be efficiently processed through the PRAVAAH Portal.

Going Forward, a broad range of regulatory applications, including those for banks, NBFCs, payment licensing and change of control requirements, will need to be submitted through the PRAVAAH Portal. This will streamline the regulatory procedure and ensure applications are processed promptly.

What are the Features of the PRAVAAH Portal?

The PRAVAAH portal is an important step towards modernizing the regulatory application process, enhancing efficiency, and facilitating a more business-friendly environment under the RBI’s regulatory framework. Some of the core features of PRAVAAH portals are:

• PRAVAAH provides a centralized web-based platform to access various regulatory and supervisory application forms.
• Individuals and entities can use it to apply for various regulatory approvals.
• The PRAVAAH portal simplifies and streamlines the process of seeking authorization, licenses or regulatory approvals from RBI. 
• The PRAVAAH Portal maintains efficiency and transparency by displaying time limits for application decisions and approvals.
• It is designed for ease of doing business, allowing individuals and entities to apply online seamlessly and reducing paperwork.
• Any reference or request to be made to the RBI through this portal.

Additional Initiatives Launched Alongside PRAVAAH Portal

The initiatives of launching another platform, the Retail Direct mobile App and the FinTech repository aim to enhance public access and streamline the regulatory process.

1. Retail Direct Mobile App

In November 2021, the RBI launched the retail direct portal for retail investors to open Retail Direct Gilt Accounts with the RBI under the Retail Direct Scheme. This scheme allows retail investors to participate in the primary auction and to buy and sell government securities (G-Secs) in the secondary market.

With the introduction of the Retail Direct Mobile App, retail investors can now conduct G-Sec transactions directly from their smartphones. This app enables retail investors to easily access and conduct transactions involving government securities (G-Secs) directly from their mobile devices by visiting the RBI’s website (https://rbiretaildirect.org.in).

2. FinTech Repository

The FinTech Repository is designed to gather key information about FinTech entities, including their activities and technology usage. Both regulated and unregulated FinTech are encouraged to contribute to this repository accessible at https://fintechrepository.rbihub.in/  because the repository provides comprehensive information about the Indian fintech sector from a regulatory standpoint, helping to shape suitable policy approaches.

In parallel, a related repository, the EmTech Repository, is being launched to capture data on the adoption of emerging technologies such as AI, Cloud computing, Quantum, etc., by RBI-regulated entities such as banks and NBFCs.

What Repositories are Launched by the RBI?

The RBI has launched two separate repositories, one for fintech companies and another for RBI-regulated entities. The FinTech repository is designed to collect detailed data on both regulated and unregulated fintech activities, products, technologies and financials.

This dedicated repository will help regulators gain a deeper understanding of the nature and extent of new-age technologies in the BFSI sectors, encouraging both licensed players and unregulated fintech companies to voluntarily disclose their details to the RBI.

On the other hand, the EmTech repository focuses on how banks and NBFCs are adopting emerging technologies. It aims to provide insights into the integration of innovative technologies within the financial sector.  

Both the FinTech and EmTech repositories are secure web-based applications managed by the Reserve Bank Innovation Hub (RBIH), a wholly owned subsidiary of the RBI which provides repositories of aggregated sector-level data, trends and analytics which will be helpful for policymakers and industry participants.

How is RBI Transforming Finance with the PRAVAAH Portal, Retail Direct Mobile App and FinTech Repository?

The PRAVAAH Portal will allow any individual or entity to easily apply online for various regulatory approvals. The PRAVAAH Portal will improve the efficiency of the RBI’s regulatory approval and clearance process. The RBI is significantly advancing the finance sector through initiatives like the PRAVAAH Portal, retail direct mobile app, and FinTech Repository.

The PRAVAAH Portal enhances regulatory compliance efficiency by automating the process of identifying and addressing violations. This portal ensures timely redressal to maintain accountability and transparency within the financial ecosystem.

The Retail Direct Mobile App is another groundbreaking initiative that enables retail investors to seamlessly invest in government securities. It provides a user-friendly interface and eliminates intermediaries to secure investment options.

The FinTech repository acts as a comprehensive database of financial technology innovation and developments, serving as a crucial resource for policymakers and industry stakeholders to stay ahead of emerging trends and regulatory challenges in the fintech industry.

Conclusion

The RBI is driving transformative changes in the financial sector by launching the PRAVAAH portal, retail direct mobile app and FinTech repository to enhance regulatory efficiency, ease of doing business and financial inclusivity. By leveraging technology, the RBI simplifies the regulatory process, broadens market access and provides valuable resources for navigating the evolving fintech landscape.

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