![RBI sets eligibility rules for SFBs seeking universal banking licence RBI sets eligibility rules for SFBs seeking universal banking licence](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgHt048hwDj9uZrpNPPZAHsQxdSEnRmZGMPMsPIUYC3b5mK35OJ43_gVHLkYjHtAmvUeOtkQ-oqW2aSTrxNi7AT1MvweI199F0x8iHjdmbaomckfSFD2kraPUkjF1-vDrABvyobnNFWvEBQr_0HQql-84SOy5IQPEuNVlQSVfiqbRhvloYmuF6w9boCQaNZ/w320-h192-rw/Copy%20of%20Copy%20of%20Copy%20of%20Copy%20of%20Copy%20of%20Untitled%20(500%20%C3%97%20300%20px)%20(500%20%C3%97%20280%20px)%20(500%20x%20300%20px).png)
- These criteria are essential for SFBs to transition into full-fledged banks and offer comprehensive services to both retail and corporate clients.
- Here are the key requirements:
- Operational Track Record: SFBs must have a five-year track record of satisfactory performance.
- Net Worth: They need to maintain a net worth of at least 10 billion rupees.
- Capital Adequacy: SFBs should meet the prescribed capital adequacy requirements.
- Profitability: Recent profitability is crucial, and they should demonstrate consistent profitability over the past two years.
- Limited Non-Performing Assets: SFBs must have limited non-performing assets.
- Market Listing: Their shares should be listed on a recognized stock exchange.
- Existing Promoters: Existing promoters can continue without new additions.
- Shareholding Plans: Approved shareholding plans will remain unchanged.
- Diversified Loan Portfolios: SFBs with diversified loan portfolios are favored.
- Detailed Rationale: Eligible SFBs must provide a detailed rationale for the transition.
- Assessment Guidelines: Their applications will be assessed based on specified guidelines, including those for on-tap licensing and shareholding directions.
- Norms Upon Transition: After transitioning, the banks will adhere to all relevant norms, including the structure of a non-operative financial holding company
Question:
Q.1 What is the minimum net worth requirement for SFBs seeking a universal banking license?a. 5 billion rupees
b. 10 billion rupees
c. 15 billion rupees
d. 20 billion rupees