The Reserve Bank of India (RBI) on April 26, 2024, issued the notification regarding the Voluntary transition of Small Finance Banks to Universal Banks.
The following has been stated namely: -
• This circular is applicable to all Small Finance Banks
• The objective of bringing better clarity, the eligibility criteria for an SFB to transition into a Universal bank will now be as follows:
o Scheduled status with a satisfactory track record of performance for a minimum period of five years
o Shares of the bank should have been listed on a recognised stock exchange
o Having a minimum net worth of ₹1,000 crore as at the end of the previous quarter (audited)
• The provisions contained in the circular shall be effective from April 26, 2024.
[Notification No. RBI/2024-25/28]
