On 13 April, the Reserve Bank of India (RBI) returned Ujjivan Small Finance Bank's (SFB) application for a voluntary transition to a universal bank, asking it to diversify its loan portfolio. RBI had also returned Jana SFB's application in October 2025 for failing eligibility criteria under its April 2024 framework for SFB-to-universal bank transitions. Jana and Ujjivan are expected to reapply. AU Small Finance Bank, the largest among SFBs, is the only entity in the category to receive the approval. While this shows there is a pathway, the RBI's moves signal it is not just about size.