The board of AU Small Finance Bank (AU SFB) approved a proposal for its conversion into an universal bank.

• The small finance bank (SFB) said in a regulatory filing that it will file an application with the Reserve Bank of India (RBI) for the transition into a universal bank.
• This is pursuant to RBI guidelines for ‘on tap’ licensing of universal banks in the private sector announced on August 1, 2016 and the banking regulator’s circular on voluntary transition of SFBs to universal banks of April 26, 2024.
• The Jaipur-based SFB added that its board has constituted a committee of directors to vet the application for submission with the RBI.