Regional rural banks may also be allowed to turn into SFBs: SBI Research

In fact, some of the large RRBs are bigger than the SFBs currently operating in the market

Regional Rural Banks (RRBs) should be given the option to graduate into small finance banks (SFBs) in line with cooperative banks or be granted on-tap licenses to become SFBs, State Bank of India (SBI) Research said in its report.

“In keeping with the fast-paced changes in the banking space and to facilitate growth, a scheme for voluntary transition of Urban Co-operative Banks (UCBs) into SFBs was introduced in September 2018. RRBs may also be permitted to graduate into SFB in line with Cooperative banks or granted on-tap license to RRBs to become SFBs”, the report said.

In fact, some of