The Reserve Bank of India (RBI) has made it mandatory for all financial institutions, financial companies, and RBI-regulated entities to use the PRAVAAH portal for submitting applications related to licenses, approvals, and authorizations. From, 1 May 2025 all applications must be submitted via PRAVAAH portal.
Who Must Use PRAVAAH?
Mandatory for:
- Scheduled Commercial Banks (including Small Finance Banks, Regional Rural Banks, Local Area Banks)
- Urban Co-operative Banks
- State & Central Co-operative Banks
- Non-Banking Financial Companies (NBFCs) including Housing Finance Companies
- All-India Financial Institutions
- Payment System Operators
- Other RBI-regulated entities (REs)
What Can Be Submitted ?
- Applications for regulatory authorizations, licenses, and approvals using specific forms available on PRAVAAH.
- If a specific form is unavailable, a general-purpose form may be used.
Purpose of Mandating PRAVAAH
- Enhance regulatory oversight.
- Reduce processing time for applications.
- Minimize bureaucratic inefficiencies.
- Allow real-time tracking of application status.
- Ensure uniformity in application formats and procedures.
What is PRAVAAH Portal?
Full form: Platform for Regulatory Application, Validation and Authorisation.
About:
- A secure, web-based portal introduced by RBI on May 28, 2024.
- Aims to centralize and simplify the process of submitting applications to RBI.
- Provides a single, streamlined platform for individuals and companies to apply for regulatory permissions from RBI.
Features:
- Contains all necessary application forms.
- Provides instructions for submission and tracking applications.
- User support available via:
- User manual
- FAQs
- Video tutorials
Why Was PRAVAAH Made Compulsory?
Despite its introduction, many banks and institutions continued using traditional methods (emails, hard copies) for applications.
RBI mandated PRAVAAH to:
- Ensure standardization of application submissions.
- Promote transparency in regulatory processes.
- Reduce delays and inconsistencies.
- Improve efficiency in approval timelines.
Since its launch, PRAVAAH has handled ~4,000 requests; mandatory usage is expected to further streamline processes.
Significance
The mandatory use of PRAVAAH will:
- Facilitate digital transformation in regulatory compliance.
- Improve transparency and accountability.
- Benefit all stakeholders with faster approvals and uniform processes.