reserve Bank of India (RBI) said on Thursday that it has decided to give in -principle approval to AU Small Finance Bank Limited to act as Universal Bank. This directly means that now AU Small Finance Bank will be able to do business like other banks. With this, this is the first full banking license released in almost a decade. AU Small Finance Bank received the license of Small Finance Bank in the year 2015. After which the bank started its functioning in April 2017 as a small finance bank.
AU Small Finance Bank applied for license in September 2024
AU Small Finance Bank has a network of more than 2505 centers in 21 states and 4 union territories of the country. By the end of June 2025, its customer base was 1.15 crore and the workforce was more than 53,000. Let us tell you that AU Small Finance Bank applied to the RBI for license in September 2024, which will allow him to issue big loans, more customers and expand its operations to make subsidy companies, which are limited to all small finance banks.
Kolkata’s Bandhan Bank got a license in 2015
The RBI had issued such a license to Bandhan Bank of Kolkata before AU Small Finance Bank in 2015, which was earlier a microfinance company. The banking regulator of India was first issued guidelines in 2014 to convert small finance banks into fully developed banks. After which the RBI updated those guidelines in April last year by improving more detailed criteria. This included a 5 -year track record of satisfactory performance, net worth of Rs 10 billion ($ 114 million), meeting capital needs, recent profits and limited NPAs.
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