AU Small Finance Bank receives in-principle approval from the RBI to become Universal Bank

The Reserve Bank has decided to grant 'in-principle’ approval to AU Small Finance Bank Limited (AUSFB) for transitioning from a Small Finance Bank (SFB) to a Universal Bank.

According to Press release, AU becomes the first Small Finance Bank in India to receive this in-principle approval to become a Universal Bank, a milestone shaped by purpose, perseverance and discipline. The application for this transition was submitted on September 3, 2024, under the RBI’s ‘on tap’ licensing guidelines (August 2016) and April 2024 framework for the voluntary conversion of Small Finance Banks to Universal Banks.

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This regulatory approval is a strong validation of AU’s robust business model, sound governance, and enduring commitment to financial inclusion. More importantly, it affirms AU’s evolution into a complete bank, one that offers a full spectrum of banking products and services that today’s customer expects, spanning retail, business, and digital solutions.

With this approval, AU becomes the first Small Finance Bank to receive an in-principle approval to become a Universal Bank, a milestone shaped by purpose, perseverance and discipline. This regulatory approval is a strong validation of AU’s robust business model, sound governance, and enduring commitment to financial inclusion.

More importantly, it affirms AU’s evolution into a complete Bank, one that offers a full spectrum of banking products and services that today’s customer expects, spanning retail, business, and digital solutions.