Starting May 1, 2025, the Reserve Bank of India (RBI) will mandate that all financial institutions, financial companies, and other RBI-regulated entities use the PRAVAAH portal for submitting applications for regulatory authorisations, licences, and approvals. This new requirement, as outlined in an RBI notification on April 11, 2025, aims to streamline and standardise the application process for financial institutions across the board.
PRAVAAH, which stands for Platform for Regulatory Application, Validation, and Authorisation, is a secure, web-based portal launched by the RBI on May 28, 2024. Its primary goal is to simplify, accelerate, and increase transparency in the process of applying for regulatory approvals. The platform has been designed to provide an all-in-one space for users to access application forms, submit them electronically, track their progress, and receive alerts throughout the process.
Despite the introduction of PRAVAAH, many financial institutions were still relying on traditional methods, such as emails and hard copy submissions, to apply for authorisations and approvals. To address this, the RBI has now mandated the use of the portal, ensuring that all applications for licenses, approvals, and regulatory authorisations must be submitted through PRAVAAH starting from May 1. The RBI noted that for applications that do not yet have a specific form available, a general-purpose form will still be provided for submission.
The move to make PRAVAAH the exclusive platform for these submissions is expected to bring several benefits, including:
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Enhanced Transparency: By centralising submissions, the process will become more transparent, with applicants being able to track the progress of their applications in real time.
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Reduced Delays: The online submission and automated processes will reduce delays associated with physical submissions or email-based applications, helping to accelerate the approval process.
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User Support: The portal includes a user manual, frequently asked questions (FAQs), and video tutorials to assist users in navigating the platform and understanding the application process more clearly.
Since its launch, the PRAVAAH portal has already received nearly 4,000 applications, indicating significant uptake. With the new mandate, the RBI expects that the platform will play a central role in ensuring efficient and timely processing of applications for all regulated entities.
The rule applies to a broad spectrum of financial entities regulated by the RBI, including:
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Scheduled Commercial Banks (e.g., Small Finance Banks, Regional Rural Banks, and Local Area Banks)
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Urban Co-operative Banks
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State and Central Co-operative Banks
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Non-Banking Financial Companies (NBFCs), including Housing Finance Companies
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All-India Financial Institutions
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Payment System Operators
By mandating PRAVAAH usage, the RBI is reinforcing its push for digitalisation in the financial sector, making the regulatory process more efficient and accessible.
