Jana Small Finance Bank Seeks Universal Bank Licence from RBI
Why in the news
Jana Small Finance Bank has formally asked RBI to let it become a universal bank, a major step in its growth plan. It received its SFB licence in 2017 and runs a retail and MSME-focused business.
About universal banking
A universal bank offers a wide range of retail, commercial and investment services. Under the on-tap policy (August 2016), eligible applicants may apply at any time.
Eligibility
| Applicant | Condition |
|---|---|
| Individuals / professionals | Indian residents; 10+ years senior banking experience |
| Private entities / groups | Resident-controlled; 10-year record; large industrial houses excluded but may hold up to 10% |
| NBFCs | Resident-controlled; 10-year record |
| Small finance banks | Net worth of ₹1,000 crore or more; scheduled bank; 5-year record; Gross NPA at most 3% and Net NPA at most 1% for two years; listing |
Exam angle
- Conversion thresholds: ₹1,000 crore net worth, GNPA 3%, NNPA 1%.