Reserve Bank of India on Friday invited applications from small finance banks meeting specified criteria, including a minimum net worth of Rs 1,000 crore, for becoming regular or universal banks.The RBI, in November 2014, issued the guidelines for licensing of small finance banks (SFBs) in the private sector. There are about a dozen SFBs, including Au Small Finance Bank, Equitas Small Finance Bank and Ujjivan Small Finance Bank.An SFB aiming to become a universal bank should have a minimum net worth of Rs 1,000 crore as at the end of the previous quarter (audited) and the shares of the bank should have been listed on a recognised stock exchange, the central bank said.It should also have a net profit in the last two financial years and GNPA and NNPA of less than or equal to 3 per cent and 1 per cent, respectively, in the last two financial years.Other conditions include a prescribed CRAR (capital-to-risk weighted assets ratio) requirement and a satisfactory track record of performance for a minimum period of five years.On shareholding pattern, the RBI said: “There is no mandatory requirement for an eligible SFB to have an identified promoter. However, the existing promoters of the eligible SFB, if any, shall continue as the promoters on the transition to universal bank”.Further, the addition of new promoters or change in promoters would not be permitted for an eligible SFB during the transition period.“There shall be no new mandatory lock-in requirement of minimum shareholding for existing promoters in the transitioned universal bank,” the circular said.In December 2019, the RBI provided the transition path for SFBs to convert into universal banks.(This story has not been edited by News18 staff and is published from a syndicated news agency feed - )