CORPORATE
RBI returns Ujjivan SFB’s application to convert into a universal bank
- IBJ Bureau
- Apr 14, 2026
Ujjivan Small Finance Bank (Ujjivan SFB) has said that the RBI has rejected its application to transition to a universal bank and advised it to re-apply after demonstrating a diversified loan portfolio.
In a regulatory filing, Ujjivan SFB has added that the RBI has taken note of the bank’s recent efforts towards diversification of its loan portfolio.
“However, they (the RBI) were of the view that there is scope for progress in this area. Therefore, (the) RBI has returned the above-mentioned application and advised the bank to consider applying again after demonstrating a diversified loan portfolio,” Ujjivan has said.
In February 2025, Ujjivan SFB had announced that it had submitted an application for universal banking licence to the RBI.
The application for transitioning to a universal bank was submitted as a part of the bank’s long-term growth plans, the lender has said in a statement. “Ujjivan will continue to embark on the path of diversification and will re-submit the application in due course, keeping (the) RBI’s guidance in view,” it has added.
This is the second application by an SFB that the RBI has “returned” in recent past. The regulator had earlier returned Jana SFB’s universal bank licence application, while giving in-principle approval to AU SFB to convert into a universal bank. The RBI had also granted in-principle approval to Fino Payments Bank’s request to transition into an SFB.
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