30th May 2024: The Reserve Bank of India (RBI) unveiled three significant initiatives aimed at enhancing financial inclusion, improving customer access to government securities, and fostering innovation within the financial technology (fintech) sector. These initiatives, introduced on Tuesday, include the Pravaah portal, the Retail Direct mobile app, and a comprehensive Fintech Repository.
Pravaah Portal
The Pravaah portal is designed to streamline and expedite regulatory processes. This digital platform allows regulated entities to submit their applications and track their status in real-time. The primary objective of Pravaah is to enhance transparency and efficiency in regulatory approvals, thereby reducing the turnaround time for various processes. By digitizing these interactions, the RBI aims to facilitate a smoother regulatory experience for financial institutions, enhancing overall compliance and operational efficiency.
Retail Direct Mobile App
The Retail Direct mobile app is a groundbreaking initiative that provides retail investors with direct access to government securities (G-Secs). This app is part of the RBI’s Retail Direct Scheme, which was initially launched to democratize the investment landscape, allowing individual investors to participate in the government securities market. Through the app, users can now easily invest in G-Secs, simplifying the investment process and broadening the investor base. This initiative not only aims to deepen the bond market but also to empower individual investors by providing them with a secure and convenient platform to invest in government-backed securities.
Fintech Repository
The establishment of a Fintech Repository marks a significant step towards fostering innovation in the financial technology space. This repository serves as a comprehensive database of fintech entities operating in India, including their products, services, and regulatory status. The repository aims to provide a single-point reference for all fintech-related information, promoting transparency and facilitating better regulatory oversight. By cataloging the rapidly evolving fintech landscape, the RBI seeks to encourage innovation while ensuring that emerging technologies comply with existing regulatory frameworks.
Impact and Future Prospects
These initiatives collectively represent the RBI’s commitment to leveraging technology to enhance financial services and regulatory processes in India. The Pravaah portal is expected to significantly reduce the time and effort required for regulatory compliance, benefiting financial institutions and other regulated entities. The Retail Direct mobile app opens up new investment opportunities for individual investors, contributing to a more inclusive financial system. Meanwhile, the Fintech Repository will play a crucial role in mapping the fintech ecosystem, enabling better regulation and support for innovative financial solutions.
By implementing these initiatives, the RBI aims to create a more transparent, efficient, and inclusive financial environment in India. These steps are part of a broader strategy to harness digital advancements for the benefit of all stakeholders in the financial system, from individual investors to large financial institutions. As these platforms are adopted and refined, they are expected to drive significant improvements in how financial services are accessed and regulated in India.
“The RBI’s decision to launch the three pioneering initiatives can be deemed a potential game-changer for the financial services industry as a whole. FinTech revenues in India are expected to grow at 35%+ annually to reach $190B+ revenues by 2030. Against this backdrop, the launch of a comprehensive FinTech Repository provides an opportunity to redraw the regulatory boundaries and take stock of the innovative products and services emerging as a result of FinTech solutions and the adoption of advanced technologies. We believe the FinTech Repository is a comprehensive resource for industry stakeholders and regulators alike, informing policy formulations and strengthening security measures.” – Mr Nirav Choksi, CEO & Co-founder of CredAble
Mr. Nirav Choksi is the Co-founder and CEO of CredAble, India’s largest working capital tech platform, with a mission of creating working capital infrastructure for the world. CredAble leads the working capital space enabling more than USD 6 billion annually in working capital and witnessing over 500% year-on-year growth.
Backed by a diverse global experience of over 28 years and an impressive career as an entrepreneur, Nirav brings on board a wealth of experience. As a highly accomplished business leader, Nirav has incubated and scaled businesses, raised debt and equity financing, and built multi-disciplinary global teams in the areas of technology, private equity, and international commodities.
He is instrumental in orchestrating the revenue growth opportunities for CredAble in complex and emerging markets globally.
Prior to CredAble, Nirav co-founded and led Equentia Natural Resources Pte Ltd., a multi- commodity trading and structured finance company with offices in Singapore, Jakarta, Dubai, and Mumbai. ENR has a significant structured trade finance and debt arbitrage operation. With revenues exceeding $500 Million a year and trading volumes of over 10 million MT, the company today leads the charts as top 5 importers of Indonesian Thermal Coal for the private sector in India.
Think Working Capital, Think CredAble www.credable.in As an active early-stage investor in tech-enabled consumer-led ventures, he has invested in over 25 opportunities. Nirav has also founded several companies in the internet and technology space and has helmed 3 successful exits.
A renowned thought leader and an acclaimed speaker, Nirav has been featured in industry- leading publications and has taken the stage at many global events. Nirav holds a Bachelor of Computer Science and Economic degree from the University of Michigan.
