Small Finance Banks to Universal Banks: RBI Decision Awaited
Why in the news
Governor Sanjay Malhotra said in an interview that a decision on SFB conversion bids was near.
Key facts
| Applicant SFB | Applied |
|---|---|
| AU | September 2023 |
| Ujjivan | February 2024 |
| Jana | June 2025 |
Background
Universal banks offer retail, commercial and investment services. RBI’s On Tap licensing for private universal banks began in August 2016.
Eligibility
- Listed entity; net worth ₹1,000 crore; five-year scheduled bank record.
- GNPA at most 3%, NNPA at most 1% and net profit for two years.
- Capital adequacy, rationale, preferably a diversified loan book.
Exam angle
- On Tap licensing: August 2016.
- Criteria: ₹1,000 crore, 3%, 1%.