Jaipur based AU Small Finance Bank on Saturday said the Reserve Bank of India has modified a condition attached to its in-principle approval for transitioning from a small finance bank to a universal bank.
Earlier, the RBI had stipulated that promoter and promoter group shareholding in the proposed universal bank structure must be held through a Non-Operative Financial Holding Company (NOFHC).
However, the regulator has now replaced this requirement. Under the revised condition, the NOFHC structure will only become applicable if the bank or its promoters establish any other group entity in the future, the bank said in an exchange filing.
The lender had first received in-principle approval from the RBI on August 7, 2025 for its transition into a universal bank, with the approval valid for a period of 18 months.
Following the latest regulatory communication dated March 6, 2026, AU Small Finance Bank said it will proceed with submitting its application for the final universal banking licence, under the guidance of its board and within the stipulated timeline.
The bank added that the final licence will be granted only after the RBI assesses its compliance with all applicable regulatory guidelines and conditions.
