Banking: This small finance bank has applied for universal banking license, what impact will it have on customers?

Ujjivan Small Finance Bank has applied for a universal banking license with the Reserve Bank of India (RBI). The bank said that by becoming a universal bank, it can further improve its position in the banking sector by providing better facilities to its customers. The bank said that it has consistently shown strong financial performance and has been committed to financial inclusion, providing services to various needy customers.

Big step for customers

Ujjivan is now set to become a universal bank, which will be a big step in its development. However, RBI approval will be necessary for this. If the bank gets a universal banking license, it will help Ujjivan to provide comprehensive and better banking services to its customers and will get an opportunity to connect more people with financial facilities.

What is the difference between small finance and universal bank?

It is necessary for small finance banks to open 25% of their branches in rural areas, which mainly provide facilities to small and middle class businesses, farmers and lower class people. Whereas, after getting a universal or general banking license, banks can provide banking facilities to all types of customers. This will provide more facilities to their customers than ever before.

AU Small Finance Bank has also applied.

Last year, AU Small Finance Bank also applied to RBI for a universal bank license. RBI had invited applications in April 2023 from small finance banks that meet the prescribed criteria, including a net worth of at least Rs 1,000 crore, to become regular or universal banks.

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