India, Aug. 7 -- The Reserve Bank of India (RBI) has granted 'in-principle' approval to AU Small Finance Bank Limited (AUSFB) to transition from a Small Finance Bank (SFB) to a Universal Bank
As per the Guidelines for Licensing of Small Finance Banks in the Private Sector issued on November 27, 2014, SFBs were provided a transition path to become Universal Banks, subject to meeting certain conditions. These include fulfilling the minimum paid-up capital or net worth requirement applicable to Universal Banks, maintaining a satisfactory track record as an SFB for at least five years, and undergoing a due diligence process by the RBI.
To further clarify the transition process, the RBI issued a circular on April 26, 2024, outlining the eligib...