RBI Initiate to Use PRAVAAH portal from 1st May to All Stakeholders

To streamline, digitize, and enhance transparency in the regulatory approval process, the RBI had introduced the PRAVAAH portal in May 2024. Now, to improve compliance and efficiency, the RBI has made it mandatory for all regulated entities to use this online platform for all applications, effective May 1, 2025. The move is part of RBI’s broader push toward digital governance in the financial sector.

Why in the News?

The Reserve Bank of India (RBI) has issued a mandate requiring all banks, financial institutions, and regulated entities to compulsorily submit applications for licenses, authorizations, and approvals through the PRAVAAH portal from May 1, 2025.

About PRAVAAH Portal

• Full Form: Platform for Regulatory Application, Validation, and Authorization
• Launch Date: May 28, 2024
• Type: A secure, web-based digital portal by the Reserve Bank of India
• Objective: To provide a single-window platform for applying for various RBI-related permissions, licenses, and approvals

New RBI Directive (April 29, 2025)

• Effective from May 1, 2025
• All regulated entities must submit applications exclusively through PRAVAAH
• Applies to forms already available on the portal
• Includes license applications, regulatory authorizations, and other approvals

Entities Covered

• Scheduled Commercial Banks (including Small Finance Banks, Local Area Banks, Regional Rural Banks)
• Urban Co-operative Banks
• State/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

Portal Features

• User Manual, FAQs, and video tutorials for easy navigation
• Application tracking facility available
• Around 4,000 applications already processed since its launch
• Aims to reduce manual submission, increase transparency, and speed up approval processing