Jana Small Finance Bank Ltd. submitted an application to the Reserve Bank of India on Monday, requesting approval for its voluntary transition from a small finance bank to a universal bank.
This application has been made in compliance with the RBI guidelines for 'on tap' licensing of small finance banks in the private sector, issued on Dec. 5, 2019, and in accordance with the RBI circular on the voluntary transition of small finance banks to universal banks, on April 26, 2024, according to an exchange filing on Monday.
The bank has to fulfil multiple criteria to receive a universal banking licence. This includes being listed on a stock exchange, ensuring a minimum net worth of Rs 1,000 crore and achieving minimum capital requirements.
Further, the lender must have recorded a net profit in the previous two fiscal years and make sure that its non-performing asset ratios are within prescribed limits.
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