RBI issues guidelines for small finance banks to voluntarily transition to universal banks.

The Reserve Bank of India (RBI) has released a set of guidelines for small finance banks (SFBs) to voluntarily transition to universal banks. Eligible SFBs must maintain a minimum net worth of ₹1,000 crore, have shares listed on a recognized stock exchange, demonstrate a net profit over the past two fiscal years, and meet other specified criteria. The transition will allow SFBs to expand their services and customer bases, as they are currently restricted from granting large loans and establishing subsidiaries.

April 26, 2024
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