PRAVAAH, RBI Retail Direct Mobile Application, FinTech Repository: RBI launches three new initiatives 

The Reserve Bank of India (RBI) on May 28 launched three major initiatives namely, PRAVAAH portal, RBI Retail Direct mobile application and FinTech Repository. These three initiatives were earlier announced as part of RBI’s bi-monthly Statement on Development and Regulatory Policies in April 2023, April 2024 and December 2023, respectively. 

The PRAVAAH portal will make it convenient for any individual or entity to apply  online for various regulatory approvals in a seamless manner. This portal will also enhance the efficiency of various processes related to granting of regulatory approvals and clearances by the Reserve Bank.

The Retail Direct Mobile App will provide retail investors a seamless and convenient access to the retail direct platform and provide ease of transacting in
government securities (G-Secs). 

The Fintech Repository will contain information on Indian FinTech Sector for a better understanding of the sector from a regulatory perspective and facilitate in designing appropriate policy approaches. 

‘PRAVAAH’ (Platform for Regulatory Application, VAlidation and AutHorisation) portal

PRAVAAH is a secure and centralised web-based portal for any individual or entity to seek authorisation, license or regulatory approval on any reference
made by it to the Reserve Bank. The following are some of the key features available in the portal.

(i) Submit the application online on the portal;
(ii) Track and Monitor the status of the application/reference;
(iii) Respond to any clarification/query sought by the RBI in connection with the
application/reference; and
(iv) Receive a decision from the Reserve Bank in a time bound manner.  

At present, 60 application forms covering different regulatory and supervisory departments of RBI have been made available on the portal. This also includes a general purpose form for applicants to submit their requests which are not included in any other application form. More application forms would be made available as may be required. 

Mobile Application for RBI Retail Direct portal
 
The retail direct portal was launched in November 2021 to facilitate retail investors to open their Retail Direct Gilt accounts with the Reserve Bank of India (https://rbiretaildirect.org.in) under the Retail Direct Scheme. 

The scheme allows retail investors to buy G-Secs in the primary auctions as well as buy and sell GSecs in the secondary market. With the launch of the retail direct mobile app, retail investors can now transact in G-Secs using the mobile app on their smartphones. The mobile app can be downloaded from the Play Store for Android users and App Store for iOS users.

"The launch of PRAVAAH and the RBI Retail Direct mobile app marks a significant step forward in the regulatory landscape, providing a streamlined, efficient, and accessible platform for fintechs. By enabling easy online applications for various regulatory approvals, PRAVAAH will enhance operational efficiency, reduce processing times, and foster a more conducive environment for innovation and growth in the fintech sector," said Nilay Patel, Founder & Managing Director, Easy Pay.

FinTech Repository

The FinTech Repository aims to capture essential information about FinTech entities, their activities, technology uses, etc. FinTechs, both regulated and
unregulated, are encouraged to contribute to the Repository accessible at the URL: https://fintechrepository.rbihub.in.

Simultaneously, a related repository for only RBI regulated entities (banks and NBFCs) on their adoption of emerging technologies (like AI, ML, Cloud Computing, DLT, Quantum, etc.), called EmTech Repository is also being launched and can be accessed at the URL: https://emtechrepository.rbihub.in.

The FinTech and EmTech Repositories are secure web-based applications and are managed by the Reserve Bank Innovation Hub (RBIH), a wholly owned subsidiary of RBI. 

The repository would enable availability of aggregate sectoral level data, trends, analytics, etc., that would be useful for both policymakers and participating industry members. Reserve Bank of India encourages the FinTechs and Regulated Entities to actively contribute to the Repositories.

“The technology landscape in India is continuously evolving however the use of emerging technologies also brings with it challenges in terms of its usage and being complaint with the regulatory norms. The Fintech “Yellow pages” will ensure seamless transfer of information between the Fintech industry and the regulatory authority while allowing the latter to tailor regulations basis the challenges faced by the industry," said Yashwant Lodha, Co-Founder, PayNearby, on FinTech Repository

"We applaud the RBI's foresight in launching PRAVAAH, FinTech repository and the EmTech Repository. These initiatives mark a significant step towards a future-proof financial sector in India.  By creating a comprehensive data repository on FinTech entities, their activities, and technology adoption within regulated institutions, the RBI is fostering a culture of transparency that is crucial for building a secure ecosystem. Furthermore, by encouraging participation from both FinTechs and regulated entities, the RBI is encouraging a collaborative environment where all stakeholders can leverage the repository's insights to strengthen security practices and drive innovation," said Ankit Ratan, Co-founder & CEO, Signzy.

"We commend the RBI's launch of the PRAVAAH portal, FinTech Repository, and EmTech Repository. These initiatives are pivotal for a robust financial sector in India. For a TReDS platform like ours, the enhanced regulatory transparency and comprehensive data on FinTech and emerging technologies foster a secure and innovative ecosystem. This data-driven approach empowers policymakers to create agile regulations, facilitating smoother operations in invoice discounting and fostering collaboration between FinTechs and regulated entities. India is thus poised to lead in financial sector development and innovation," said Sundeep Mohindru, Promoter & Director, M1xchange.