The Reserve Bank of India (RBI) on Friday released a set of criteria that small lenders need to achieve, including performance metrics and market listing, to become a universal bank and provide comprehensive services to both retail and corporate clients.
The criteria include a five-year track record of satisfactory performance, a net worth of 10 billion rupees, meeting capital requirements, recent profitability and limited non-performing assets, the Reserve Bank of India (RBI) said.
Existing promoters can continue without new additions and approved shareholding plans will remain unchanged, while diversified loan portfolios are favoured, the central bank said.
Small finance banks face limitations in terms of their customer base and are restricted from granting large loans. Additionally, they are unable to establish subsidiaries.
Eligible small finance banks will have to provide a detailed rationale for the transition, with their application assessed according to specified guidelines, including those for on-tap licencing and shareholding directions.
Upon transition, the banks will adhere to all relevant norms, including the structure of a non-operative financial holding company, the RBI said.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
Featured Video Of The Day
Trump Assassination Attempt: How Does It Change The US Campaign?
Crypto Industry Criticises Lack of Bank Support for Cryptocurrencies, Asks RBI to Define Crypto-Banking Relations India Can Become World's 2nd-Largest Economy By 2031: RBI Deputy Governor Banking Sector Witnessing A Decade-High Performance: RBI Trump's Vice President Pick Reveals How His Hindu Wife Helped Him What Trump Rally Shooter Did On Last Day Of His Life "Someone Must Have Doubted...": Doctor On Trainee IAS Officer's Disability Claim Mumbai BMW Hit-And-Run Accused Mihir Shah Sent To Jail For 14 Days Try These Dairy-Free Foods To Help Boost Your Calcium 'Godman' Illegally Builds Temple Near Sacred Lake In Uttarakhand, Probe On Track Latest News Live on NDTV.com and get news updates from India and around the world.