AU Small Finance Bank has submitted an application to the Reserve Bank of India (RBI) to seek approval for voluntary transition from a Small Finance Bank to Universal Bank on September 03, 2024. This is a significant step for the bank, potentially expanding its reach and services.
The eligibility criteria for a small finance bank to transition into a universal bank is that it must have a satisfactory track record of performance for at least five years, should be listed on stock exchanges, and should have a minimum net worth of Rs 1,000 crore.
AU Small Finance Bank is a small finance bank (SFB) that has recently transitioned from a prominent, retail focused nonbanking finance company (NBFC), which primarily served low and middle-income individuals and businesses that have limited or no access to formal banking and finance channels.
