RBI Makes PRAVAAH Portal Mandatory

• 29 Apr 2025
• 835 Views

The Reserve Bank of India (RBI) has made an announcement that from 1 May 2025 onwards, all the banks, financial companies and other regulated banks will have to file their applications for regulatory authorizations, approvals and licenses through the PRAVAAH portal exclusively.

In an official statement on 28 April 2025, the RBI explained, “This move seeks to enhance efficiency, ensure faster processing, and improve transparency within India's financial regulatory system.”

The Central Bank stated, "With effect from May 01, 2025, Regulated Entities are advised to use PRAVAAH for submitting applications for regulatory authorisations, licences, approvals to the Reserve Bank using the application forms already available in the portal." Further, it clarified that comprehensive instructions on accessing the portal, filing applications, and tracking the progress of the same are provided within the platform itself.

Background and Objective

The Reserve Bank of India launched the PRAVAAH portal (short for: Platform for Regulatory Application, Validation and Authorization) on May 28 2024. The GOI created this secure, web-based platform to serve as a one-stop solution for individuals and businesses to submit a range of regulatory applications directly to the RBI.

Since its launch, PRAVAAH has handled around 4,000 applications. However, the RBI noticed that many users were still relying on offline submission methods, which led to delays and inconsistencies in processing, as well as a lack of transparency.

To streamline the process and ensure the users get a more uniform experience, the RBI has now made it mandatory for all applications to be submitted using the PRAVAAH portal only.

This requirement applies to Scheduled Commercial Banks incl. 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 incl. Housing Finance Companies, Primary Dealers, Payment System Operators, and Credit Information Companies.

Support and Guidance for Users

To help users figure out how to use the portal, PRAVAAH provides a range of support resources, including a detailed user manual, FAQs, and step-by-step video tutorials. The RBI, with this initiative, expects to make the application process a lot quicker, more transparent, and also easier to follow.

This move is part of the RBI’s larger push to modernize India’s financial regulatory system, reinforcing its commitment to digital innovation and stronger governance practices.

Sources:

• Times Now
• Economic Times