Daily Current Affairs : 31-May-2024
The Reserve Bank of India (RBI) has launched three foremost tasks aimed at enhancing the accessibility and efficiency of financial services within the country. These projects focus on empowering retail investors, improving regulatory processes, and promoting the usage of emerging technologies. Let’s have a look at each of these projects in detail:
1. G-Sec Mobile App: Empowering Retail Investors
The G-Sec Mobile App is a new tool that enables retail investors to buy and sell government securities (G-Secs) directly from their smartphones. This initiative aims to make it easier for individual investors to participate in the government securities market.
Key features of the G-Sec Mobile App include:
- Convenience: Investors can access government securities without needing to go through intermediaries or brokers.
- Security: The app ensures that transactions are secure and transparent.
- Access to Government Bonds: Retail investors can now invest in safe, low-risk securities issued by the government.
This initiative will help deepen the participation of retail investors in the financial markets, promoting financial inclusion.
2. PRAVAAH Portal: Streamlining Regulatory Approvals
The PRAVAAH Portal is a web-based platform designed to simplify and streamline the process of applying for various authorizations, licenses, and regulatory approvals from the RBI.
Some of the benefits of the PRAVAAH Portal are:
- Centralized Platform: All applications for approvals can now be processed in a single location.
- Improved Efficiency: The portal will speed up the approval process, reducing the time taken for approvals.
- Transparency: Applicants can track the status of their submissions and get updates in real-time.
This initiative aims to reduce bureaucratic hurdles and make the regulatory process more efficient.
3. Fintech and EmTech Repositories: Tracking Emerging Technologies
The Fintech Repository and EmTech Repository are two essential data systems introduced by the RBI.
- Fintech Repository: This platform will store data on India’s FinTech firms, helping the RBI and other regulators better understand the sector. It will also help in designing policies that are suitable for the rapidly evolving FinTech industry.
- EmTech Repository: This will track the adoption of emerging technologies like Artificial Intelligence (AI) and Blockchain within RBI-regulated entities.
These repositories will help regulators stay updated on trends and challenges in the financial sector and make informed decisions when shaping regulations.
Important Points:
- RBI’s New Initiatives: Three major projects launched by the Reserve Bank of India to improve financial accessibility, efficiency, and adoption of emerging technologies.
1. G-Sec Mobile App: Empowering Retail Investors
- Direct Access: Retail investors can buy and sell government securities (G-Secs) using their smartphones.
- Convenience: Eliminates the need for intermediaries or brokers.
- Security: Ensures secure and transparent transactions.
- Low-Risk Investment: Provides access to safe government-issued bonds.
- Goal: Enhance participation in financial markets and promote financial inclusion.
2. PRAVAAH Portal: Streamlining Regulatory Approvals
- Centralized Platform: Simplifies and centralizes the process of applying for authorizations, licenses, and regulatory approvals from the RBI.
- Improved Efficiency: Speeds up the approval process, reducing delays.
- Transparency: Allows applicants to track the status of their submissions in real-time.
- Goal: Reduce bureaucratic hurdles and enhance the efficiency of regulatory processes.
3. Fintech and EmTech Repositories: Tracking Emerging Technologies
- Fintech Repository: A database to store information on India’s FinTech firms, aiding better understanding and policy-making.
- EmTech Repository: Tracks the adoption of emerging technologies like AI and Blockchain among RBI-regulated entities.
- Goal: Help regulators stay updated on industry trends and make informed decisions about emerging technologies.
Why In News
The Reserve Bank of India (RBI) launched three major initiatives aimed at enhancing financial accessibility, improving regulatory processes, and fostering innovation within the financial sector. These initiatives reflect the RBI’s ongoing commitment to modernizing India’s financial ecosystem and ensuring greater inclusion for all stakeholders.
MCQs about RBI’s New Initiatives to Improve Financial Accessibility and Efficiency
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What is the primary goal of the G-Sec Mobile App launched by the RBI?
A. To allow retail investors to access private bonds
B. To enable retail investors to buy and sell government securities
C. To provide loans to small businesses
D. To facilitate peer-to-peer lending
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What benefit does the PRAVAAH Portal provide to applicants seeking regulatory approvals from the RBI?
A. It provides funding for small businesses
B. It simplifies and centralizes the process for applying for approvals
C. It automatically grants approvals without any paperwork
D. It tracks government bond prices
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Which of the following is the purpose of the Fintech Repository introduced by the RBI?
A. To track government bonds issued by RBI
B. To store data on India’s FinTech firms to aid regulatory decisions
C. To store personal financial data of retail investors
D. To provide loan data to banks and financial institutions
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How will the EmTech Repository support RBI-regulated entities?
A. By monitoring the stock market trends
B. By tracking the adoption of emerging technologies like AI and Blockchain
C. By providing loans to financial institutions
D. By managing the digital currency initiatives of RBI
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