With effect from May 1, 2025, all regulated financial institutions, banks, and RBI-regulated organisations will have to file any regulatory application only on the PRAVAAH portal. RBI announced this through a formal notice on Monday as it wants to simplify the process of approvals and make the system more transparent.
PRAVAAH, or Platform for Regulatory Application, Validation and Authorization, was launched by RBI in May 2024. The web-based platform has been designed to act as a one-stop-shop to file applications related to authorisations, licences and other regulatory permissions. Although the portal has already witnessed thousands of applications ever since it opened, RBI highlighted the fact that there were institutions that still availed the older, offline modes of seeking approvals.
Advertisement
The shift to a single digital platform will lead to quicker processing of the applications and allow applicants to track their requests in real time, according to the RBI. The initiative will also reduce paperwork, eliminate delays caused by manual processing, and provide uniformity in handling various regulatory applications.
In its notification, the RBI said that from May 01, 2025 onwards, regulated entities should use PRAVAAH for filing applications for regulatory authorisations, licenses, and approvals to the Reserve Bank". RBI further added that all the guidelines about accessing the portal and tracking applications are already available on the official PRAVAAH website. Additional support, including a user guide, FAQs, and video tutorials, have also been provided to familiarise users with the system.
Advertisement
The rule applies to a wide range of financial institutions governed by the RBI— Scheduled Commercial Banks, Small Finance Banks, Local Area Banks, Regional Rural Banks, Urban and Co-operative Banks, All-India Financial Institutions, Non-Banking Financial Companies (including Housing Finance Companies), Primary Dealers, Payment System Operators, and Credit Information Companies (CICs).
Candidates can browse the forms relevant to their organisation, upload paperwork as needed and track the application status using PRAVAAH. Security is made inherent, with each regulated institution limiting access to a set of privileged representatives only. The system also benefits RBI officials in viewing, responding to and handling requests efficiently.
Advertisement
Since the launch of PRAVAAH on May 28, 2024, the portal has seen nearly 4,000 applications. Although this indicates increasing adoption, the RBI noted that most regulated entities had not completely moved to the digital process. The new regulation now compels all to move to the portal, bridging the gap between those who used the old application routes and those who had already adopted the digital system.
The RBI has been pushing digitisation and improving internal systems in recent years. This recent action is part of a broader effort to update regulatory oversight and reduce friction between financial institutions and the central bank. Officials believe the utilisation of a centralised platform will not only benefit applicants by reducing waiting times but also help the RBI monitor and manage the overall number of applications better.
Advertisement
All filings made on the portal will bear a digital stamp, enabling easier tracking by the central bank and auditing, along with making application easier in the future.
As the May 1 deadline approaches, banks and financial institutions need to ensure that their personnel are trained for the application of the portal. No grace periods have been announced by the RBI as guidelines and support material are already available. These entities can expect delays or rejections in their application process.
With this move, RBI aims to gain a new benchmark of regulatory efficiency from fragmented and conventional processes towards better organised and clearer digital processes.
