RBI instructs all banks, financial companies, and other regulated entities to use PRAVAAH portal from 1st May

The Reserve Bank of India (RBI) has given clear instructions that from May 1, 2025, all banks, financial companies, and other regulated entities must use the PRAVAAH portal to submit any applications for authorisations, licenses, and approvals.

In an official statement released on Monday, the RBI said, "With effect from May 01, 2025, Regulated Entities are advised to use PRAVAAH for submitting applications for regulatory authorisations, licenses, approvals to the Reserve Bank using the application forms already available in the portal." It also added, "All Regulated Entities are advised to adhere to the above instructions. Instructions related to accessing the portal, submission and tracking of applications, etc., are available on the portal itself." PRAVAAH stands for Platform for Regulatory Application, Validation and Authorization. It is a secure, web-based portal launched by the RBI on May 28, 2024.The aim of PRAVAAH is to provide a single, safe, and streamlined platform where individuals and companies can apply for different permissions from the RBI. Since its launch, PRAVAAH has received around 4,000 applications and requests. However, the RBI noticed that some banks and financial companies were still submitting applications using older methods, outside the portal. To ensure faster processing and improve transparency, the RBI has now made it compulsory for all regulated entities to use the PRAVAAH portal only. The rule applies to Scheduled Commercial Banks (including Small Finance Banks, Local Area Banks, and Regional Rural Banks), Urban Co-operative Banks, State Co-operative Banks, Central Co-operative Banks, All-India Financial Institutions, Non-Banking Financial Companies (including Housing Finance Companies), Primary Dealers, Payment System Operators, and Credit Information Companies. The PRAVAAH portal provides all necessary application forms. Users can easily find instructions for submitting and tracking their applications directly on the platform. For additional support, the RBI has also made available a user manual, a list of frequently asked questions (FAQs), and video tutorials.

With this step, the RBI aims to make the process of seeking regulatory approvals faster, more transparent, and efficient. 

-The EconomicTimes ,29,April,2025

A new field titled 'Mode of Export of Services' introduced by DGFT

A new field titled 'Mode of Export of Services' has been introduced by The Directorate General of Foreign Trade (DGFT) in the Electronic Bank Realisation Certificate (eBRC) format for service exports, effective May 1, 2025.

This update aims to enhance the self-certification process for exporters on the DGFT portal and align India's data collection framework with global standards under the World Trade Organization's (WTO) General Agreement on Trade in Services (GATS).

What is Mode of Export of Services?

The 'Mode of Export of Services' field corresponds to the four modes of services trade listed under GATS:

Mode 1: Cross-border Supply

Services supplied remotely across borders without movement of individuals, e.g., IT services, remote consulting, telemedicine.

Mode 2: Consumption Abroad

Consumer travels to the service provider's country, e.g., tourism, medical treatment, foreign students.

Mode 3: Commercial Presence

Service supplier establishes a commercial entity abroad, e.g., Indian bank branches overseas, IT company subsidiaries.

Mode 4: Presence of Natural Persons

Individual travels abroad temporarily to provide services, e.g., engineers, doctors, IT professionals on assignment.

Impact on Exporters

Exporters certifying eBRCs linked to Indian Reference Modules (IRMs) must now specify the mode of export while completing the certification. This change aims to improve the accuracy and detail of service export reporting.

An e-BRC is the electronic version of the Bank Realisation Certificate. Introduced by DGFT in 2012, it allows banks to submit payment details digitally, making the export documentation process faster and paperless. The Authorised Dealer (AD) bank, through which the exporter receives the foreign payment, issues the e-BRC after verifying the export documents and payment details. 

e-BRCs serve multiple purposes:

•Proof of export payment received

•Mandatory for claiming export incentives (MEIS, SEIS, RoDTEP, etc.)

•Needed for GST refunds

•Ensures compliance with DGFT, RBI, and GST laws

•Supports data sharing with other regulatory bodies.