AU Small Finance Bank Seeks Universal Bank Licence Approval from RBI

AU Small Finance Bank has applied to the Reserve Bank of India (RBI) for approval to transition from a small finance bank to a universal bank. The RBI's guidelines require specific criteria, including a minimum net worth of Rs 1,000 crore. This move follows the bank's merger with Fincare Small Finance Bank.

AU Small Finance Bank (AUSFB) recently submitted an application to the Reserve Bank of India (RBI) seeking approval for a universal bank licence.

According to RBI guidelines issued in April, small finance banks must meet certain criteria, such as a minimum net worth of Rs 1,000 crore, to become universal banks.

The application, submitted on September 3, 2024, aims to transition AUSFB from its current status. Just this April, AUSFB merged with Fincare Small Finance Bank, bringing its total business mix to over Rs 1.8 lakh crore.

(With inputs from agencies.)