🇮🇳
National
🔴 High
Small Finance Bank (SFB) to Universal Bank
📅 Published 14 Apr 2026 · April 2026
Small Finance Bank (SFB) to Universal Bank
Why in News?
RBI returned applications of:
- Ujjivan SFB
- Jana SFB
Reason
Lack of diversified loan portfolio.
Small Finance Banks
Purpose:
- Financial Inclusion
- Small farmers
- MSMEs
- Low-income households
Eligibility for Universal Bank
- Net worth ≥ ₹1000 crore
- 5 years satisfactory record
- Listed company
- Profit for last 2 years
- GNPA ≤ 3%
- NNPA ≤ 1%
Difference
| Small Finance Bank | Universal Bank |
|---|---|
| Financial Inclusion | Full-service banking |
| High PSL | Normal PSL |
| Limited lending | Corporate + Retail + International |
Example
AU Small Finance Bank successfully converted.
UPSC Keywords
- Priority Sector Lending
- Financial Inclusion
- Universal Banking
- Diversification
📝 Relevant Exams:
UPSC