In April 2024, the Reserve Bank of India (RBI) issued guidelines for the voluntary conversion of which type of bank into universal banks, subject to certain conditions?

Correct option is E

The Reserve Bank of India (RBI) issued guidelines in April 2024 for the voluntary conversion of Small Finance Banks (SFBs) into universal banks.
Detailed Overview of Guidelines:
· This transition is based on the 2019 "on-tap" licensing guidelines, requiring the SFBs to meet the minimum paid-up capital or net worth requirements for universal banks, maintain a satisfactory performance for a minimum of five years, and pass the RBI’s due diligence exercise.
· To be eligible for conversion into a universal bank, the RBI stipulates that only listed SFBs will qualify.
· Those intending to convert must have a minimum net worth of Rs 1,000 crore.
· Also, the SFBs must have a scheduled status and a satisfactory track record of at least five years with a gross non-performing asset (NPA) of 3 per cent or less and a net NPA of 1 per cent or less in the past two financial years.