PARVAAH PORTAL (Syllabus: GS Paper 3 – Economy)

News-CRUX-10     29th May 2024        
Samadhaan

Context: The Reserve Bank of India (RBI) recently launched three significant initiatives, including a mobile app, to facilitate retail investor participation in the government securities (G-Secs) market.


Parvaah Portal

  • About: The 'PRAVAAH' portal serves as a secure and centralized web-based platform, facilitating individuals and entities to request authorization, licenses, or regulatory approvals from the Reserve Bank.
  • Efficiency Enhancement: This is designed to streamline and enhance the efficiency of various processes concerning regulatory approvals and clearances.
  • Timeline: These initiatives, including the PRAVAAH portal, were initially disclosed as part of the RBI's bi-monthly Statements on Development and Regulatory Policies. 

oThey were announced in April 2023, April 2024, and December 2023 respectively.

  • Retail Direct Mobile App: The Retail Direct Mobile App complements the PRAVAAH portal by providing retail investors easy and convenient access to the Retail Direct platform. It enables seamless transactions in government securities (G-Secs).
  • Tracking and Monitoring: Entities utilizing the PRAVAAH portal can efficiently monitor the status of their applications. 

oAdditionally, the Reserve Bank can communicate decisions regarding specified applications in a timely manner, ensuring a streamlined process.


Government Securities Market in India

  • About: These are tradeable instruments issued by the Central Government or State Governments, acknowledging their debt obligations.
  • Issuance by: In India, the Central Government issues both treasury bills and bonds, while State Governments issue bonds or dated securities known as State Development Loans (SDLs).
  • Risk Profile: G-Secs are considered risk-free gilt-edged instruments due to their practically non-existent risk of default.

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