RBI Grade BNABARD ESISEBI
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Source: Mint
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Context:
Ujjivan Small Finance Bank (SFB) is awaiting the Reserve Bank of India’s (RBI) decision on its application for a universal banking licence, which could come by December 2025, according to CEO Sanjeev Nautiyal.
About Universal Bank:
A universal bank in India is a financial institution that provides the entire spectrum of banking services, including:
- Retail banking
- Corporate banking
- Investment banking
- Treasury services
- Asset management
Criteria to Become a Universal Bank in India (RBI Guidelines):
- Net Worth: The applicant bank must have a minimum paid-up capital of ₹500 crore (may vary as per RBI directions).
- Profitability & Track Record: The bank should have a strong financial track record and operational performance (for SFBs or other applicants).
- Corporate Governance: Robust governance, risk management, and compliance framework.
- Capital Adequacy: Must meet the Capital to Risk-Weighted Assets Ratio (CRAR) requirements as per Basel norms (minimum 9% for Indian banks).
- Promoter Eligibility: Promoters must meet RBI criteria regarding integrity, experience, and financial soundness.
- Business Plan: Must submit a credible business plan outlining financial projections, growth strategy, and risk management.
