Small Finance Banks can now apply to become universal banks under the on-tap licesning norms: RBI
Mumbai, April 27 -- The Reserve Bank of India (RBI) on Friday said that small finance banks (SFBs) meeting certain criteria can now seek approval from the regulator to transition into universal banks under the on-tap licesning norms.
To qualify, eligible SFBs must maintain a minimum net worth of Rs 1,000 crore at the end of the preceding quarter and fulfill the stipulated Capital to Risk (Weighted) Assets Ratio (CRAR) requirements designated for SFBs, the central bank said.
As per RBI directives, SFBs aspiring for universal bank status must have scheduled status and demonstrate a satisfactory performance track record spanning a minimum of five years. Additionally, their shares must be publicly traded on a recognized stock exchange.
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