The Reserve Bank of India (RBI) introduced the PRAVAAH Portal on 28th May 2024 to digitize the regulatory approval process, enhancing efficiency in handling online applications. As per the press release dated 11th April 2025, the RBI has mandated that all applicants, including authorized dealer (AD) banks, utilize the PRAVAAH Portal for submitting regulatory approval applications related to foreign exchange and trade starting 1st May 2025. Offline submissions will be permitted only in exceptional circumstances. This initiative aims to streamline processes, improve tracking mechanisms, and ensure prompt responses to follow-up queries from the RBI.
Applications for Remittances and Current Account Transactions
Several applications under the Foreign Exchange Department (FED) must be submitted via the PRAVAAH Portal, focusing on remittances and current account transactions. These include approvals for miscellaneous current account or import of services-related remittances, handled by the External Payment Division, FED, CO, as outlined in the Master Direction – Other Remittance Facilities and Master Direction – Import of Goods and Services (both dated January 01, 2016). Additionally, applications for remittances by non-individuals exceeding the limits prescribed under para 2.i of Schedule III of Foreign Exchange Management – Current Account Transactions Rules, 2000 (dated May 03, 2000), and remittances surpassing the permissible Liberalised Remittance Scheme (LRS) limits, as per the Master Direction – Liberalised Remittance Scheme (dated January 01, 2016), are included.
Investment and Property-Related Approvals
The PRAVAAH Portal also facilitates applications for foreign investment and property transactions. This includes approvals for the acquisition or sale of immovable property, governed by the Master Direction – Acquisition or Transfer of Immovable Property under Foreign Exchange Management Act, 1999 (updated as of September 01, 2022). Applications for foreign investment in non-debt instruments, as per the Master Direction – Foreign Investment in India (dated January 04, 2018), and prior approvals for overseas investments, under the Master Direction – Overseas Investment (dated August 22, 2022), are also required to be submitted through the portal. Additionally, regulatory approvals for establishing Liaison Offices (LO), Branch Offices (BO), or Project Offices (PO) in India, as per the Master Direction – Establishment of Branch Office (BO)/ Liaison Office (LO)/ Project Office (PO) (dated March 17, 2016), fall under this category.
Compounding and Trade-Related References
The portal supports applications related to compounding contraventions and trade references. Applicants can submit additional information or addendums to existing compounding applications and file fresh compounding applications under the Directions – Compounding of Contraventions under FEMA, 1999 (dated November 07, 2023). Confirmation for opting for personal hearings, including preferred dates and times, is also managed through the portal. Furthermore, references related to the Export Data Processing and Monitoring System (EDPMS) and Import Data Processing and Monitoring System (IDPMS), governed by the Master Direction – Export of Goods and Services and Master Direction – Import of Goods and Services (both dated January 01, 2016), are to be submitted via PRAVAAH.
Borrowing, Lending, and Regulatory Clarifications
Applications for borrowing and lending under the Foreign Exchange Management Act (FEMA) are covered, as outlined in the Master Direction – External Commercial Borrowings, Trade Credits and Structured Obligations (dated March 26, 2019). Regulatory approvals under FEMA-five R and FEMA-ten R, related to deposits and accounts, are also processed through the portal, as per the Master Direction – Deposits and Accounts (dated January 01, 2016). Additionally, applicants can seek clarifications on regulations from the External Payment Division, FED, CO, referencing multiple Master Directions on remittances, LRS, imports, and miscellaneous matters (all dated January 01, 2016). This comprehensive approach ensures a streamlined, efficient, and transparent process for all forex and trade-related regulatory approvals.
