The Reserve Bank of India (RBI) has approved the appointment of Carol Kripanayana Furtado as the interim Managing Director and Chief Executive Officer (MD and CEO) of Ujjivan Small Finance Bank (Ujjivan SFB) for three months with effect from 1 September 2026. She succeeds Sanjeev Nautiyal, who sought early retirement on health grounds after serving as MD and CEO since July 2024. The approval, conveyed through a letter dated 1 September 2026, ensures leadership continuity while the Bengaluru headquartered bank searches for a regular chief.
RBI Approves Interim Leadership Change at Ujjivan SFB
The Reserve Bank of India, which is the central bank and banking regulator of India headquartered in Mumbai, cleared the interim appointment on 1 September 2026 itself. Ujjivan SFB informed the stock exchanges that the RBI had approved Carol Kripanayana Furtado, who was serving as Whole-Time Executive Director, to take charge as interim CEO.
Her tenure is for three months from 1 September 2026 or until a regular MD and CEO is appointed, whichever is earlier. This means the interim arrangement will automatically end if the bank identifies and secures RBI approval for a permanent chief before the three month period expires.
The process moved in two steps on the same day. First, on the morning of 1 September, the bank’s board approved her appointment as acting MD and CEO on the recommendation of its Nomination and Remuneration Committee (NRC), subject to RBI approval. Later the same day, the RBI conveyed its approval and the designation was confirmed as interim MD and CEO.
The bank said its succession planning and leadership development framework would help manage the transition without disruption.
| Detail | Information |
|---|---|
| Bank | Ujjivan Small Finance Bank Limited |
| Interim MD and CEO | Carol Kripanayana Furtado |
| Previous role | Whole-Time Executive Director |
| Effective date | 1 September 2026 |
| Tenure | 3 months or until regular MD and CEO is appointed, whichever is earlier |
| Approving authority | Reserve Bank of India |
| Predecessor | Sanjeev Nautiyal |
| Headquarters | Bengaluru, Karnataka |
Who is Carol Kripanayana Furtado?
Carol Kripanayana Furtado is a veteran banker with close to three decades of experience in retail banking and the Non-Banking Financial Company (NBFC) sector. An NBFC is a financial institution that offers banking like services without holding a full banking licence. She is currently the Whole-Time Executive Director of Ujjivan SFB, a position she has held since 1 May 2024 for a three year term after receiving RBI approval on 21 March 2024.
She is a postgraduate from the Mount Carmel Institute of Management, Bengaluru, and has completed strategic leadership programmes at the Indian Institute of Management Ahmedabad (IIM Ahmedabad) and Harvard Business School, Boston. Before joining Ujjivan, she worked with the ANZ Group, Bank Muscat, and Centurion Bank Ltd.
Within Ujjivan, she is regarded as a core member of the founding leadership team that built the institution from its early NBFC days. She has held several key roles including Chief Business Officer, Head of Operations and Service Quality, and Chief Human Resource Officer. In these roles she led business growth, banking operations, credit, people functions and service quality. She was instrumental in Ujjivan being recognised as a certified Great Place to Work.
In 2009, she received the Financial Women’s Association Award from Women’s World Banking, a global nonprofit headquartered in New York, in recognition of her professional commitment. She brings expertise across business, strategy, operations and institutional functions, which the board cited when recommending her for the interim top role.
It is useful to understand the difference between an acting and an interim chief. An acting MD and CEO is a temporary charge given by the board pending regulatory clearance, while an interim MD and CEO is the same charge after it has received formal RBI approval under the Banking Regulation Act, 1949. In this case, Furtado moved from acting to interim on 1 September 2026 once the RBI letter arrived.
Why Did Sanjeev Nautiyal Step Down?
Sanjeev Nautiyal took charge as MD and CEO of Ujjivan SFB on 1 July 2024 for a three year term. He is a career banker with more than 30 years of experience, largely with the State Bank of India (SBI), where he served as Deputy Managing Director for Financial Inclusion and Micro Markets and later as Managing Director and CEO of SBI Life Insurance.
On 31 August 2026, he sent an email to the board seeking early retirement with a three month notice period, citing health issues. The board considered the request at its meeting on 1 September 2026 and approved it while placing on record its appreciation for his contribution.
With effect from 1 September 2026, he ceased to be MD and CEO and Key Managerial Personnel (KMP) of the bank. A KMP is a senior executive designated under the Companies Act, 2013 who bears specific legal and compliance responsibility. He will remain on leave during the notice period and will formally retire from the bank on 30 November 2026, which was his originally scheduled retirement date.
During his tenure of just over two years, the bank credited him with progress in several areas. These included growth in the secured loan book, strengthening of the deposit franchise, improved digital and analytics capabilities, and a more robust risk management and internal control framework. A secured loan is a loan backed by collateral, which lowers risk for the lender.
What is Ujjivan Small Finance Bank?
Ujjivan Small Finance Bank Limited is a private sector scheduled Small Finance Bank headquartered at Grape Garden, Koramangala, Bengaluru, Karnataka. It is not a government bank. Like all Small Finance Banks in India, it operates under a licence and supervision of the Reserve Bank of India and deposits are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC), which makes it a regulated and safe institution within the RBI framework.
The bank was incorporated as a public limited company on 4 July 2016 under the Companies Act, 2013. Its promoter, Ujjivan Financial Services Limited (UFSL), which began operations as an NBFC in 2005 with the mission to serve the economically active poor, received in-principle approval on 7 October 2015 and final approval on 11 November 2016 from the RBI to set up a Small Finance Bank. Ujjivan SFB commenced banking operations on 1 February 2017 after receiving a licence under Section 22(1) of the Banking Regulation Act, 1949, and was included in the Second Schedule of the RBI Act on 3 July 2017, which grants it scheduled bank status. In April 2024, UFSL was amalgamated into the bank, simplifying its corporate structure. In February 2025, the bank applied to the RBI for a Universal Banking Licence, seeking to become a full scale universal bank.
The journey aligns with the larger Small Finance Bank story in India. The RBI issued the first licensing guidelines on 27 November 2014 and granted in-principle approval to 10 applicants on 16 September 2015, including Ujjivan, Au Financiers, Equitas, ESAF, Janalakshmi and others. On tap licensing guidelines for Small Finance Banks were later issued on 5 December 2019.
Understanding Small Finance Banks in India
A Small Finance Bank (SFB) is a differentiated bank licensed with the primary objective of furthering financial inclusion. Financial inclusion means providing access to savings, credit, and other financial services to sections that are traditionally unserved or underserved, such as small business units, small and marginal farmers, micro and small industries, and entities in the unorganised sector. SFBs operate on a high technology, low cost model.
Key features mandated by the RBI are clear. SFBs are registered as public limited companies and licensed under the Banking Regulation Act, 1949, and are given scheduled bank status once they start operations. They must extend 75 percent of their Adjusted Net Bank Credit to sectors eligible under Priority Sector Lending (PSL), which covers agriculture, micro enterprises and other weaker sections. At least 50 percent of their loan portfolio must be loans and advances of up to ₹25 lakh, ensuring focus on small borrowers. They can accept all types of deposits, offer the full range of banking services and operate pan India, but must open 25 percent of branches in unbanked rural areas. They are subject to the same Cash Reserve Ratio (CRR), Statutory Liquidity Ratio (SLR) and other prudential norms as other commercial banks.
As of 2026, there are 11 Small Finance Banks operating in India, regulated as scheduled banks.
| Sr No | Small Finance Bank | Headquarters |
|---|---|---|
| 1 | Au Small Finance Bank Limited | Jaipur, Rajasthan |
| 2 | Capital Small Finance Bank Limited | Jalandhar, Punjab |
| 3 | Equitas Small Finance Bank Limited | Chennai, Tamil Nadu |
| 4 | ESAF Small Finance Bank Limited | Thrissur, Kerala |
| 5 | Suryoday Small Finance Bank Limited | Navi Mumbai, Maharashtra |
| 6 | Ujjivan Small Finance Bank Limited | Bengaluru, Karnataka |
| 7 | Utkarsh Small Finance Bank Limited | Varanasi, Uttar Pradesh |
| 8 | Jana Small Finance Bank Limited | Bengaluru, Karnataka |
| 9 | Shivalik Small Finance Bank Limited | Saharanpur, Uttar Pradesh |
| 10 | Unity Small Finance Bank Limited | Mumbai, Maharashtra |
| 11 | slice Small Finance Bank Limited | Bengaluru, Karnataka |
Small Finance Bank vs Other Bank Types
Many readers search for the difference between a Small Finance Bank and a normal bank or a payments bank. The table below clarifies the distinction.
| Feature | Small Finance Bank (SFB) | Universal or Commercial Bank | Payments Bank | NBFC and Microfinance Institution |
|---|---|---|---|---|
| Licence | RBI licence under Section 22(1), scheduled bank | RBI licence as commercial bank | RBI licence as payments bank, scheduled | Registered with RBI as NBFC, not a bank |
| Deposits | Can accept all deposits like savings and fixed deposits | Can accept all deposits | Can accept deposits only up to ₹2 lakh per customer, cannot lend | Generally cannot accept demand deposits |
| Lending | Can lend, with focus on small loans and PSL of 75 percent | Can lend without SFB specific limits | Cannot lend at all | Can lend, but no deposit insurance |
| Priority sector target | 75 percent of credit | 40 percent for domestic banks | Not applicable | Not applicable |
| Deposit insurance | Covered by DICGC up to the insured limit | Covered by DICGC | Covered by DICGC | Not covered |
| Example | Ujjivan SFB, Au SFB | State Bank of India, HDFC Bank | Airtel Payments Bank | Bajaj Finance, earlier Ujjivan Financial Services as NBFC-MFI |
How Does RBI Approve MD and CEO Appointments?
The appointment of a Managing Director and CEO in any bank, including a Small Finance Bank, requires prior approval of the RBI. This is not a formality. It is a statutory safeguard under the Banking Regulation Act, 1949.
Key provisions that govern the process are found in the Banking Regulation Act, 1949. Section 35A gives the RBI power to issue directions on governance to secure proper management of banking companies. The Reserve Bank of India (Small Finance Banks: Governance) Directions, 2025, issued on 28 November 2025 under this section, lay down comprehensive rules for boards, MD and CEO, Whole-Time Directors, Chief Risk Officer and remuneration. Section 35B requires RBI approval for the appointment and remuneration of the MD and CEO and Whole-Time Directors. Section 10B requires a bank to have a separate Part-time Chairman and a Managing Director and CEO responsible for day to day management, and at least two Whole-Time Directors including the MD and CEO on its board.
The RBI checks the fit and proper criteria before clearing any name. This covers formal qualification, expertise, track record, integrity and absence of conflicts of interest. Banks must obtain a Declaration and Undertaking from the candidate and the Nomination and Remuneration Committee must satisfy itself that the information is true and complete.
Under the 2025 Governance Directions, the procedural steps are clearly defined. The bank must submit its proposal through the Pravaah Portal (https://pravaah.rbi.org.in), the RBI’s centralised portal for regulatory approvals, in Form B along with the declaration. For appointment of a new MD and CEO, the proposal must contain a panel of at least two names in order of preference and be submitted at least four months before the expiry of the present incumbent’s term. For reappointment, the proposal must be submitted at least six months before expiry. For interim arrangements arising from sudden vacancies due to resignation or health reasons, the board can appoint an acting chief on NRC recommendation and then seek post facto approval, as happened in the Ujjivan case, for a limited period of three months.
Tenure and age limits are also prescribed. No person can continue as MD and CEO or Whole-Time Director beyond the age of 70 years, and no incumbent can hold the post for more than 15 years in the same bank, with a three year cooling period before any reappointment. For promoter or major shareholder incumbents, the limit is 12 years, extendable to 15 years at the RBI’s sole discretion.
An Amendment Directions of 2026, which comes into effect on 1 October 2026, further rationalises matters that must be placed before the board, helping boards focus more on strategy and risk governance while retaining accountability for leadership decisions.
What Lies Ahead for Ujjivan SFB?
With the interim approval in place, the immediate priority is leadership stability. The bank has said its board will begin the process of identifying a permanent successor to Sanjeev Nautiyal and will submit its recommendation to the RBI in due course. Market reports indicate the board expects to complete this search within the next three to four months. The RBI will then assess the names on fit and proper criteria before giving final clearance.
The transition comes at a sensitive time. Ujjivan SFB is pursuing its application for a Universal Banking Licence, submitted in February 2025 under the RBI’s April 2024 voluntary transition framework. To be eligible, a Small Finance Bank must have scheduled status for at least five years, be listed, have minimum net worth of ₹1,000 crore, have been profitable in the last two financial years, and maintain Gross Non-Performing Assets at or below 3 percent and Net Non-Performing Assets at or below 1 percent in the last two years. A diversified loan portfolio is preferred. Success in this transition would allow Ujjivan to expand its portfolio, reduce regulatory constraints that apply specifically to SFBs, and serve customers with greater flexibility.
For customers, the interim change does not alter day to day banking. Branch operations, deposits, loans, net banking and the bank’s pan India network continue under RBI supervision. For investors, leadership changes in banks often cause short term volatility. Media reports noted that Ujjivan SFB shares fell by about 5 percent after the announcement on 2 September 2026, reflecting uncertainty until a permanent chief is named.
The bank’s emphasis on succession planning suggests an attempt to reassure stakeholders that its strategic focus will continue. This includes growth in secured assets, a strong deposit franchise, investment in digital and analytics, and adherence to financial inclusion goals for which Small Finance Banks were created.
The coming months will therefore be watched for two clear outcomes. First, who the board recommends and who the RBI approves as the next regular MD and CEO before the interim term ends. Second, how the RBI responds to the universal bank application, which will determine the next phase of Ujjivan’s corporate structure.
Key Takeaways
- The RBI approved Carol Kripanayana Furtado as interim MD and CEO of Ujjivan Small Finance Bank on 1 September 2026 for three months or until a regular chief is appointed, whichever is earlier.
- She succeeds Sanjeev Nautiyal, who ceased as MD and CEO on 1 September 2026 after seeking early retirement on health grounds and will formally retire on 30 November 2026.
- Furtado is the Whole-Time Executive Director since 1 May 2024 with about 29 years of banking experience across retail banking and NBFC domains, and is a postgraduate from Mount Carmel Institute of Management, Bengaluru.
- Ujjivan SFB commenced operations on 1 February 2017 as a private scheduled Small Finance Bank headquartered in Bengaluru, promoted by Ujjivan Financial Services (2005), and was among the 10 entities granted in-principle approval on 16 September 2015.
- Appointment and remuneration of MD and CEO in Small Finance Banks requires prior RBI approval under Sections 35A, 35B and 10B of the Banking Regulation Act, 1949, processed through the Pravaah Portal and governed by the RBI (Small Finance Banks: Governance) Directions, 2025.
