Jana Small Finance Bank (Jana SFB) has submitted an application to the Reserve Bank of India (RBI) seeking approval to transition from a small finance bank (SFB) into a full-fledged universal bank.
The development marks a significant milestone in Jana’s evolution and reflects the growing ambition among SFBs to expand their operational scope and market reach, said the regulatory filing on June 9.
The application was made under the regulatory framework outlined in the RBI’s “On Tap” licensing guidelines for small finance banks issued on December 5, 2019, and the latest circular on voluntary transition to universal banks released by the RBI on April 26, 2024.
The RBI’s April 2024 circular laid out specific eligibility norms for voluntary transition of SFBs to universal banks. These include a minimum track record of 5 years as an SFB; Compliance with minimum net worth and capital adequacy norms; Strong governance, risk management, and internal control frameworks; and no regulatory or supervisory concerns.
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