Context:
The Reserve Bank of India (RBI) has issued a directive requiring all regulated financial entities to use the PRAVAAH portal for submitting applications related to licenses, authorisations, and approvals starting from May 1, 2025. This initiative aims to centralize regulatory communications and introduce uniformity across the financial system.
What is the PRAVAAH Portal?
PRAVAAH (Platform for Regulatory Application, Validation, and Authorisation) is a secure, web-based digital platform introduced by the RBI. It is designed to streamline the application process, enabling individuals and entities to file, track, and manage various regulatory requests through a single unified system.
Scope and Applicability
From May 1, 2025, all Regulated Entities (REs) will be required to submit their applications via PRAVAAH. The entities include:
- 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 (NBFCs), including Housing Finance Companies
- Primary Dealers
- Payment System Operators
- Credit Information Companies
Reason Behind the Directive
PRAVAAH has been operational for nearly a year and has processed around 4,000 applications. However, many entities continued using legacy submission channels. The RBI’s decision to make the use of PRAVAAH mandatory aims to:
- Eliminate delays
- Improve transparency
- Enhance monitoring efficiency
Process Guidance for Regulated Entities
- The RBI clarified that instructions regarding portal access, application submission, and status tracking are available on the PRAVAAH portal itself.
- This ensures that the transition to the digital system will be smooth, with no interruption to the compliance obligations of any entity.
This directive reinforces the RBI’s commitment to a digital, transparent, and efficient regulatory environment. The mandatory adoption of PRAVAAH is expected to simplify the interface between the RBI and financial entities, strengthening regulatory governance and improving the overall regulatory framework.
