REGULATORY · INDIA
RBI relaxes AU SFB NOHC requirement
Change
The RBI revised AU Small Finance Bank’s universal bank transition approval to allow promoter shareholding to continue without forming a non-operating holding company (NOHC) at this stage.
Why it matters
The revision applies to AU Small Finance Bank’s transition from a small finance bank to a universal bank. Promoter shareholding is permitted to continue without creating an NOHC for now. An NOHC is required only if the group later establishes additional financial services entities. The RBI had issued an in-principle approval for the transition on Aug 7, 2025, with an 18-month validity period.
Implications
- • Promoter ownership can be maintained without implementing an NOHC structure at the current stage.
- • NOHC formation is triggered by the establishment of additional financial services entities within the group.
Who is affected
- • Bank promoters and controlling shareholders
- • Bank corporate governance and compliance teams
- • Bank licensing and supervision teams
Source
Topics
Law & Public Safety Regulatory Actions Compliance Finance & Banking Banking Regulation