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The Reserve Bank of India (RBI) has announced that starting May 1, 2025, all banks, Non-Banking Financial Companies (NBFCs), and other financial institutions must use the PRAVAAH portal to submit their applications for approvals, licenses, and regulatory permissions. This decision is part of RBI’s bigger goal to promote digitization, improve transparency, and speed up communication between the central bank and financial institutions.
In a notification issued on Monday, RBI clearly said that banks, NBFCs, financial institutions, and other entities under its supervision must stop using offline methods and switch completely to the PRAVAAH portal. The RBI mentioned, “From May 1, 2025, regulated entities should use PRAVAAH to send in applications for regulatory authorizations, licenses, and approvals using the forms already available on the portal.”
The PRAVAAH Portal (Platform for Regulatory Application, Validation, and Authorization) is a secure, centralized, web-based platform launched by the Reserve Bank of India (RBI) on May 28, 2024. It is designed to streamline the submission and processing of applications for regulatory authorizations, licenses, and approvals.
The PRAVAAH portal was launched by the Reserve Bank of India (RBI) to modernize, simplify, and speed up the regulatory approval process for financial entities in India. Here are the main reasons why it was introduced:
Reasons for Launching the PRAVAAH Portal
- Streamlining Regulatory Processes
- RBI used to handle many regulatory applications manually or through scattered channels, which caused delays and inefficiencies.
- The portal brings all applications (e.g., licenses, approvals, authorizations) into one digital platform, making the process uniform and easy to manage.
- Improving Transparency and Accountability
- With the portal, applicants can track the real-time status of their requests.
- This visibility promotes fairness and reduces uncertainty for financial institutions.
- Speeding Up Approvals
- A digital workflow allows RBI departments to process applications faster.
- Built-in timelines and communication tools help reduce back-and-forth delays.
- Reducing Paperwork and Physical Submissions
- The portal eliminates the need for physical documents and visits to RBI offices.
- This supports a shift toward paperless and contactless governance.
- Ensuring Better Communication
- Through the portal, applicants can receive timely alerts, respond to RBI queries, and avoid missed correspondence.
- Mandating Usage for All Regulated Entities
- From May 1, 2025, all RBI-regulated entities (like banks, NBFCs, and payment operators) must use the portal, making the process consistent and centralized.
Key Features of the PRAVAAH Portal
- Digital Application Submission: Applicants can submit applications electronically, eliminating the need for physical paperwork.
- Real-Time Tracking: Users can monitor the status of their applications and receive updates via SMS and email.
- Comprehensive Support: The portal provides necessary application forms, instructions, user manuals, FAQs, and video tutorials to assist users in the application process.
- Enhanced Communication: Facilitates streamlined communication between applicants and the RBI, allowing for timely clarifications and responses to queries.
Mandatory Usage from May 1, 2025
Effective May 1, 2025, the RBI has mandated that all regulated entities must exclusively use the PRAVAAH portal for submitting applications related to authorizations, licenses, and regulatory approvals. This directive applies to a wide range of entities, including:
- Scheduled Commercial Banks (including Small Finance Banks, Local Area Banks, and Regional Rural Banks)
- Urban Co-operative Banks
- State and Central Co-operative Banks
- All-India Financial Institutions
- Non-Banking Financial Companies (including Housing Finance Companies)
- Primary Dealers
- Payment System Operators
- Credit Information Companies
This move aims to enhance efficiency, transparency, and speed in the regulatory approval process.
Accessing the PRAVAAH Portal
The PRAVAAH portal is accessible at https://pravaah.rbi.org.in. Users can find detailed instructions, application forms, and support resources directly on the platform.
By centralizing and digitizing the application process, the PRAVAAH portal represents a significant step forward in the RBI’s efforts to modernize and streamline regulatory interactions.
