AU Small Finance Bank (AU) has received an in-principle approval from the Reserve Bank of India (RBI) to become a Universal Bank. With this, AU becomes the first Small Finance Bank in India to receive this in-principle approval to become a Universal Bank, a milestone shaped by purpose, perseverance and discipline.
This regulatory approval is a strong validation of AU’s robust business model, sound governance, and enduring commitment to financial inclusion. The application for this transition was submitted on September 3, 2024, under the RBI’s ‘on tap’ licensing guidelines (August 2016) and April 2024 framework for the voluntary conversion of Small Finance Banks to Universal Banks.
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.
