August 12, 2025

Big news for banking fans! The Reserve Bank of India (RBI) has given in-principle approval to AU Small Finance Bank (AUSFB) to become a Universal Bank. What does that mean for you? More products, stronger services, and absolutely no disturbance in your accounts, interest rates, or the way you access banking. According to the bank’s website, AU Small Finance Bank will now work hard to meet all RBI rules and checks to complete this new journey. They applied for this on September 3, 2024, under RBI’s special 'on tap' license guideline launched in August 2016 and the fresh April 2024 framework allowing Small Finance Banks (SFBs) to switch to Universal Banks. So, how does a small finance bank become a big player? RBI says an SFB must meet these tough rules: - Be scheduled banks with a good five-year track record - Have shares listed on recognized stock exchanges - Hold a net worth of at least Rs 1,000 crore by last quarter (audited) - Meet capital ratio norms - Show profit in the last two years - Keep gross non-performing assets (GNPA) ≤ 3% and net NPA ≤ 1% in the last two years AU Small Finance Bank proudly meets all these, showing strong performance and great governance. Wondering what this means for your daily banking? No worries! The bank promises no disruption to what you already enjoy. Your savings accounts, current accounts, loans, deposits, credit cards, wealth solutions, insurance, forex services, investments—all stay live and well. You can continue using AU 0101 app, internet banking, WhatsApp banking, and visit branches just like before. No need to update your debit or credit cards, cheque books, passbooks, or account numbers. And guess what? Your fee structure keeps steady too—any changes will be shared with you long before. One more spice to this news: the bank will refresh its logo and branding to show its exciting new status, while still holding on to the values that made it popular. So, keep an eye out! The next big chapter for AU Small Finance Bank is here, promising more power-packed banking with zero hassle for customers. As the RBI puts its trust in AU’s strong journey, your banking experience is set to get even better. Stay tuned for the magic of Universal Banking coming your way!

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Tags: Au small finance bank, Universal bank, Rbi approval, Bank transition, Banking products, Indian banks,