How AU SFB Founder Sanjay Agarwal Passed RBI Muster

The CA from Jaipur ticked all the right boxes in clearing an excruciating RBI vetting process

- T. Surendar

Sanjay Agarwal, the latest winner of the central bank's rare universal bank licence, may have inadvertently ticked the right boxes on his path to glory.

On Thursday, the Reserve Bank of India issued an 'in-principle' approval for Agarwal's AU Small Finance Bank to transition into a universal bank, making it the first full-fledged banking licence issued in nearly a decade.

Its licence is only the fifth to be granted this century; it's also the first since RBI began allowing continuous applications for universal bank licences in 2016 under its 'on-tap' guidelines, instead of in phases.

Agarwal has succeeded where Flipkart co-founder Sachin Bansal and Indiabulls failed to make the cut.

Those aware of the rigorous process involved will tell you it's easier to milk a bull than get a bank licence out of RBI. Though entrepreneurs seeking a universal bank licence are required to have Rs 1,000 crore in hard cash as capital, the regulator abhors entrepreneurs who flaunt money.

Also in RBI's negative list are those who exert political or other pressures for a lenient consideration of their application.