AU Small Finance Bank (AU SFB) through an exchange filing on March 7, said that it has received revised communication from the Reserve Bank of India (RBI) regarding the Bank’s ongoing transition from a Small Finance Bank to a Universal Bank.
RBI had earlier granted an in‑principle approval on August 7, 2025, for the transition, with a validity period of 18 months. As part of the in-principle approval, RBI had stipulated that the shareholding of the promoters/promoter group in the transitioned Universal Bank be held through a Non‑Operative Financial Holding Company (NOFHC).
Through its letter dated March 6, 2026, RBI has now replaced this requirement. Now, the NOFHC structure will be required only if the transitioned universal Bank or its promoter/promoter group proposes to establish any group entity in the future.
AU Small Finance Bank will continue to progress towards submitting its application for the final Universal Bank license within the stipulated timelines, under the supervision of its Board. The grant of the final license will remain subject to RBI’s evaluation of the Bank’s compliance to relevant regulatory guidelines and instructions.
The update has been duly filed with stock exchanges in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.