Jana Small Finance Bank's Universal Ambitions Face Regulatory Setback
Jana Small Finance Bank's application to transition into a universal bank was returned by the Reserve Bank of India due to unmet criteria. Despite this setback, the bank remains hopeful and plans to address the issues before reapplying. Presently, Jana SFB continues its operations akin to a universal bank.
- Country:
- India
The Reserve Bank of India has returned Jana Small Finance Bank's application to become a universal bank, citing unfulfilled criteria. The Small Finance Bank's MD and CEO, Ajay Kanwa, revealed that the exact reasons were not explicitly stated by the regulator.
Kanwal emphasized that this is a return, not a rejection, and expressed determination to address the necessary criteria before reapplying. The aim is to meet the regulator's expectations after discussing the specifics with RBI officials later in the week.
Jana Small Finance Bank's operations remain unaffected, allowing it to function like a universal bank. However, achieving a universal bank license could lower funding costs, a benefit now postponed. Despite the setback, market excitement over the application had previously boosted the bank's stock performance.
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