How the RBI’s New PRAVAAH Portal Makes FEMA Approvals Easier for NRIs?

Have you ever found it hard to deal with money rules when living in another country?

Many Indians living abroad (NRIs) find it really tough to get FEMA approvals.

To help with this, the Reserve Bank of India (RBI) created the PRAVAAH website. They announced it in April 2023 and started it in May 2024. This new website makes it easier to ask for approvals online. It’s much better than the old way of asking through banks, which was slow and sometimes unfair.

The PRAVAAH website has 60 different forms for various RBI approvals. We’ll talk about how PRAVAAH makes getting FEMA approvals quicker and easier.

Before PRAVAAH: What NRIs Had to Deal With

Getting FEMA approvals used to be really hard for NRIs. Here’s why:

It took a long time: Sometimes weeks or months to get approvals. They had to use special banks: This could cause delays and unfairness. They couldn’t check how things were going: This made people feel unsure and frustrated.

PRAVAAH: A Big Help for NRIs

PRAVAAH stands for Platform for Regulatory Application, Validation, and Authorization. It makes the FEMA approval process easier for NRIs.

Talk directly to RBI: No need for middlemen anymore. Apply online: You can apply from anywhere in the world. Same forms for everyone: This makes things simpler and reduces mistakes.

What Kind of Approvals Does PRAVAAH Help With?

PRAVAAH has 60 forms for different RBI approvals. Some examples are:

Property and Money Approvals PRAVAAH helps NRIs get approval for selling inherited farmland, sending large inheritances abroad, receiving property gifts from family, and putting money from selling houses into their foreign bank accounts.

General Approvals It also helps with buying or selling property in India, setting up offices, getting bank guarantees, handling foreign loans, and fixing FEMA-related problems.

For more details on specific approvals, you can click a link (not provided in this summary).

Who Does PRAVAAH Help?

PRAVAAH helps both Indian companies and NRIs:

Indian Companies Can:

1. Open more bank accounts for their branches in India.
2. Get approval to pay back foreign loans early.
3. Get approval to send more money to their foreign branches.
4. Apply to expand their business or move money between offices.

NRIs Can:

1. Apply to sell land they didn’t mean to buy in India.
2. Apply to send large inheritances (over $1 million) out of India.
3. Apply to receive property gifts from family in India.
4. Get approval to put money from selling multiple properties into their foreign accounts.
5. Apply directly to RBI without going through banks.
6. Apply online without paperwork.
7. Use clear, consistent forms.
8. Check how their application is going and when they might get an answer.

Conclusion

PRAVAAH is going to make it much easier for NRIs to deal with FEMA approvals. It makes things clearer and faster, which helps with money matters when living abroad. For more information about PRAVAAH and FEMA rules, you can visit the RBI website. Stay informed to make the most of this helpful new website.

FAQS’

Q1. What is the PRAVAAH portal?

Ans- PRAVAAH is an online platform launched by the RBI that allows NRIs to directly apply for FEMA approvals without needing to go through banks.

Q2. How does PRAVAAH simplify FEMA approvals for NRIs?

Ans- PRAVAAH makes the process easier by allowing direct online applications, removing the need for intermediaries, reducing waiting times, and letting users track their applications.

Q3. What kinds of approvals can NRIs apply for through PRAVAAH?

Ans- NRIs can use PRAVAAH to apply for approvals such as selling inherited farmland, transferring large inheritances abroad, receiving property gifts, and depositing money from property sales into foreign accounts.

Q4. How long does it take to get approval through PRAVAAH?

Ans- The time can vary depending on the approval type and application details, but PRAVAAH aims to be faster than the old process through banks.

Q5. Can NRIs use PRAVAAH to apply from anywhere?

Ans- Yes, NRIs can apply for FEMA approvals from anywhere in the world as long as they have internet access.

Q6. What was the process like before PRAVAAH?

Ans- Before PRAVAAH, NRIs had to apply through banks, which often caused delays and a lack of clarity in processing times.

Q7. Does it cost anything to use PRAVAAH for FEMA approvals?

Ans- The RBI hasn’t mentioned extra fees for using PRAVAAH, but there may still be standard fees for specific FEMA approvals.

Q8. How can I check my application status on PRAVAAH?

Ans- Applicants can check the status of their application directly on the PRAVAAH portal, with updates and estimated decision times.

Q9. Who else benefits from PRAVAAH besides NRIs?

Ans- Indian companies can also benefit by using PRAVAAH to apply for approvals related to foreign transactions, like opening new bank accounts or expanding international operations.

Q10. Where can I get more information about PRAVAAH and FEMA rules?

Ans- For more details, visit the RBI’s official website, which has extensive information on PRAVAAH and FEMA regulations, including guides and FAQs.