Divya Delhi :SFBs aspiring to become universal banks must have scheduled status and a sufficient track record of performance for a minimum period of time, according to the central bank. SFBs aspiring to become universal banks are required to have scheduled status and a satisfactory performance track record for at least five years, according to the central bank.twenty-five years.For the voluntary conversion of small finance banks (SFBs) into universal banks, the Reserve Bank of India (RBI) has issued guidelines. Small finance institutions that wish to qualify must satisfy the prescribed CRAR requirements and have a minimum net worth of Rs 1,000 crore as of the end of the previous quarter, as per the guidelines set forth by the central bank.SFBs desiring to attain universal bank status must additionally possess designated status and demonstrate a satisfactory performance record spanning at least five years, according to the document. In addition, the RBI stated that the bank's shares ought to have been listed on a recognized stock exchange.

Prior to this, on December 5, 2019, the RBI outlined in the "Guidelines for 'on-tap' Licensing of SFBs in Private Sector" a transition path for SFBs to become universal banks.