Small Finance Banks to Universal Banking : Redefining Roles
In a recent move by the Reserve Bank of India (RBI), guidelines have been issued to enable Small Finance Banks (SFBs) to transition into universal banks. This development is set to open new avenues for SFBs, allowing them to expand their operations and cater to a broader spectrum of banking services and products.
Key Points:
Eligibility Criteria:
To qualify for this transition, SFBs must meet specific eligibility criteria set by the RBI, including:
Maintaining a minimum net worth of Rs 1,000 crore.
Demonstrating a satisfactory track record of at least five years.
Ensuring profitability over the last two financial years.
These stringent requirements aim to ensure the stability and viability of SFBs in their new role as universal banks.
Expanded Services:
...