Page 59 - Banking Finance May 2025

RBI CIRCULAR

RBI

CIRCULAR

Processing of Regulatory Authorisations/ Li- Basel III Framework on Liquidity Standards –
censes/ Approvals through PRAVAAH Liquidity Coverage Ratio (LCR) – Review of hair-
April 28, 2025 cuts on High Quality Liquid Assets (HQLA) and
review of composition and run-off rates on cer-
1. In terms of the various Statutes/Master Circulars/Di-
rections/Instructions etc. issued by the Reserve Bank tain categories of deposits
from time to time, the Regulated Entities are required April 21, 2025
to submit applications/requests for seeking
authorisations/licenses/approvals from different De- 1. Please refer to circular DBOD.BP.BC.No.120/21.04.098/
partments of the Reserve Bank. On May 28, 2024, the 2013-14 dated June 09, 2014 on ‘Basel III Framework
Reserve Bank launched PRAVAAH (Platform for Regu- on Liquidity Standards – Liquidity Coverage Ratio
latory Application, Validation And AutHorisation) as a (LCR), Liquidity Risk Monitoring Tools and LCR Disclo-
secure and centralised web-based portal for any entity
or individual to seek authorisation, license or regula- sure Standards’ and associated guidelines. Reference
tory approval on any reference made by it to the Re- is also invited to the draft circular on the subject
serve Bank. PRAVAAH has since facilitated receipt of issued on July 25, 2024, inviting feedback from all
nearly 4,000 applications/requests. However, some stakeholders.
applications/requests are still being submitted by the 2. The feedback received has been carefully analysed
Regulated Entities outside PRAVAAH. and it has been decided to issue final guidelines as
2. As announced in the Press Release dated April 11, under:
2025, with effect from May 01, 2025, Regulated En- i. A bank shall assign an additional 2.5 per cent run-
tities are advised to use PRAVAAH for submitting ap- off factor for retail deposits which are enabled
plications for regulatory authorisations, licenses, ap- with internet and mobile banking facilities (IMB)1
provals to the Reserve Bank using the application i.e., stable retail deposits enabled with IMB shall
forms already available in the portal. have 7.5 per cent run-off factor and less stable
3. All Regulated Entities are advised to adhere to the deposits enabled with IMB shall have 12.5 per
above instructions. Instructions related to accessing cent run-off factor (as against 5 and 10 per cent
the portal, submission and tracking of applications etc. respectively, prescribed currently).
are available on the portal itself. Further, for the con-
ii. Unsecured wholesale funding provided by non-fi-
venience of users, the user manual, FAQs and videos
nancial small business customers (SBCs) shall be
are also available on the portal. PRAVAAH portal can treated in accordance with the treatment of re-
be accessed at https://pravaah.rbi.org.in.
tail deposits as at (i) above.

BANKING FINANCE | MAY | 2025 | 53