RBI Replaces NOFHC Stipulation for AU Small Finance Bank's Transition to Universal Bank

AU Small Finance Bank Ltd. has received an update from the Reserve Bank of India (RBI) regarding its in-principle approval for transitioning from a Small Finance Bank into a Universal Bank. The RBI has replaced the stipulation that required the shareholding of promoters/promoter group to be held through a Non Operative Financial Holding Company (NOFHC). This requirement will now only apply if the Bank or its promoter proposes to establish any group entity in the future. The Bank will submit its application for the final Universal Banking license, with the grant subject to RBI's assessment of the Bank's compliance with applicable regulatory guidelines and instructions.