RBI Launches PRAVAAH Portal; What Do Law Firms Have To Say?

The Reserve Bank of India has recently launched PRAVAAH (Platform for Regulatory Application, Validation and Authorisation) with an aim to streamline the process to seek authorisation, license, license or regulatory approval. This online platform aims to simplify the application process for regulatory approvals and clearances from the RBI. It will benefit both individuals and entities. Currently, the portal offers 60 application forms covering different RBI departments. There's also a general form for requests that do not fit any specific category. All the 60 forms are available now on this portal and more application forms will be made available when the needed.

Speaking on the launch, Prashanth Ramdas, Partner, Khaitan & Co. said,“The launch of the PRAVAAH portal should streamline the licensing and approval process across various departments of the RBI. Going forward, a wide variety of regulatory applications, ranging from bank / NBFC and payments licensing to change of control requests would need to be submitted through this portal. This is a key step in the regulator’s efforts to simplify regulatory procedures and clear out applications in a time-bound manner.”

Moin Ladha, Partner, Khaitan & Co said,“The new centralised web-based platform "PRAVAAH" will streamline the process for seeking approvals, regulatory licenses and undertaking compounding for entities as well as individuals. The applicant will be able to submit its application online, track and monitor the real-time status of its application/ reference, respond to clarifications/ queries sought by the RBI and receive a decision from the RBI. Currently, the platform will allow 60 application forms covering requests made to regulatory, supervisory and the foreign exchange department. Notably, applications for approvals under the Payment and Services Act, 2007, operating as a payment aggregator, commencing banking business, establishing foreign banks in India, change in shareholding of NBFCs, acquisition/ sale of immovable property, and compounding applications will have to filed through the portal. General purpose applications can also be submitted on the portal if they are not included within the other application form. Physical filing of applications often leads to delays and uncertainty for applicants, mainly because the process has been opaque and acknowledgements on processing are not readily available. We would expect the platform to reduce the timelines involved for processing applications. Further, the portal and will enable greater clarity for the applicant by providing updates and the opportunity to upload clarifications/ responses to any query that the RBI may have. We see this is a move that could potentially improve the ease of doing business in India.”

Vidushi Gupta, Partner, Khaitan & Co. said, "The launch of PRAVAAH, Retail Direct Mobile App and Tech repositories is a visionary initiative standing tall on the three pillars of innovation, digitisation and transparency. Regulated entities are required to seek licenses / approvals from the regulator under various statutes. Until now varied processes were followed through online and offline modes to make the applications. The centralized portal PRAVAAH will now streamline this process and provide the much-needed ease, cost efficiency and convenience of making the application and even tracking the status of such applications."

Rohit Raghavan, Partner at Saraf and Partners said, The government security market has primarily been dominated by banks and insurance companies and to some extent fpis so far. Investing in gilt edged instruments has always been a way to hedge ones portfolio against market risks. With growing awareness among the general public about investing their savings in a diversified manner, the option to do it on the go from an app ensures that the convenience provided will further deepen the retail market for these instruments. Technology in the palm to invest in Gsecs, like UPI, can start a revolution in the space and give people an option of another convenient safe harbour to park their money in addition to fixed deposits.

Natasha Treasurywala, Partner at Desai & Diwanji said, “This portal could significantly streamline the process around RBI approval/license applications since currently not all applications have a standard format which leads to confusion and delays. While one can expect some initial hiccups on a new portal like this, ultimately the portal should function seamlessly allowing applicants an efficient process reducing the need to use external agencies to make such applications to the RBI.”

Kinjal Champaneria, Partner, Solomon & Co. said, “With the introduction of the Pravaah Portal, RBI has sought to streamline the much needed approval process and most importantly provide tracking the status of approval. With the ability to communicate and seek responses to queries online, it is bound to substantially reduce the timelines for the process of receipt of approval. This is a step towards encouraging business friendly environment and will surely lead to an increase in the confidence amongst the applicants."

Manmeet Kaur, Partner at Karanjawala & Co. said, “The G-Sec app provides a direct and accessible platform for individual investors to invest in government securities. Importantly, this eliminates need for third-party apps. The ease of access to investment in government securities also aims to increase individual participation in investment. The application, being a first party application is also likely to cost of each transaction compared to fees payable on third party applications.”