RBI Returns Universal Bank Applications of Ujjivan and Jana SFB
Why in the news
RBI sent back the applications of Ujjivan Small Finance Bank and Jana Small Finance Bank seeking universal bank status on 13 April 2026. It signals that the route to full-service banking is open but the test of portfolio strength stays tough.
Key facts
- Action: applications of Ujjivan SFB and Jana SFB returned.
- Reason: concentration in microfinance and inadequate loan book diversification; the review looked at balance sheet quality, not just numbers.
- Precedent: AU Small Finance Bank won approval in 2025.
SFB versus universal bank
| Feature | Small Finance Bank | Universal Bank |
|---|---|---|
| Purpose | Financial inclusion through basic banking for unserved groups such as small farmers and micro-industries | Full-service bank with no restriction on area of operations (for example SBI, HDFC) |
| Priority sector | At least 60% of ANBC or credit equivalent of off-balance sheet exposure, whichever is higher | Higher capital requirement, more freedom in corporate lending and overseas business |
Eligibility to convert (RBI guidelines, April 2024)
- Minimum net worth of ₹1,000 crore.
- Scheduled status with a satisfactory record for 5 years.
- Listed on a stock exchange.
- Net profit in the last two financial years, with Gross NPA of 3% or less and Net NPA of 1% or less in those years.
Exam angle
- Banks returned: Ujjivan SFB and Jana SFB; approved earlier: AU SFB.
- Related terms: ANBC, priority sector, GNPA, NNPA, net worth threshold.