Jammu, April 27 -- The Reserve Bank of India has established stricter parameters for Small Finance Banks seeking to upgrade into Universal Banks, as per a recent circular. Small Finance Banks will need to have a minimum paid-up capital of Rs. 1000 crores to be eligible for the enhanced banking license.

They will also be required to have scheduled bank status for at least five years and maintain a consistent track record of sound performance over this period. Another prerequisite is that the SFB's shares must be listed on a recognized stock exchange.

On the financial front, the banks need to report net profits in the last two financial years and keep their gross and net non-performing assets below 3% and 1% respectively in the same two y...