Profile
Settings
Refer your friends
Sign out
The primary focus of small finance banks is to deliver banking services to marginalised sections of society with effective functioning. However, they need to follow the rules and guidelines provided by the Reserve Bank of India and the Government of India. These institutions provide banking services such as lending and taking deposits, like other commercial banks. Currently, there are ten small finance banks across the nation. Let us learn more about them.
Overview
Small finance banks are a type of banking developed by the Reserve Bank of India under directions provided by the Government of India. The primary objective of these institutions is the financial inclusion of less privileged and underserved sections of society, including small business units, small and marginal farmers, micro and small enterprises and unorganised authorities. Small finance banks need to be registered under the Companies Act 2013 as a public limited company. These institutions provide banking services such as lending and taking deposits, like any other commercial banks. Small finance banks provide lending facilities to SMEs, unorganised sectors, small Industries, shop holders, and small business holders.
The following are the primary roles and responsibilities performed by small finance banks:
- Financial inclusion and strengthening the finances of the less privileged section of society.
- Providing primary banking services such as deposits and the supply of credits across the nation.
- Supporting other financial institutions in building an environment that would provide services equally to all sections of society.
Name of Small Finance Bank | Headquarters | Tagline | About it |
AU Small Finance Bank | Jaipur | Chalo Aage Badhe. | Initially established as vehicle finance company AU Financiers Ltd in 1997 and then converted into a finance bank on 19 April, 2017. |
Equitas Small Finance Bank | Chennai | It’s fun banking. | Established in 2016 as a microfinance lender and is a subsidiary of Equitas Holdings Ltd. |
ESAF Small Finance Bank | Thrissur, Kerala | Joy of Banking | Established as a small finance bank in March 2017. This banking institution provides services such as loans, deposits, and lending money. |
Fincare Small Finance Bank | Ahmedabad | A New Era in Smart Banking Begins | Has a combination of many smart banking services and products such as savings and current accounts, fixed deposits, micro loans, NRI fixed deposits, cash overdraft, loans against property, and gold and two-wheeler loans. |
Janalakshmi Small Finance Bank | Bengaluru | Likho Apni Kahani | Plays a role in the commercial operations of banking services; founded on 28 March, 2018. |
Capital Small Finance Bank (1st Small Finance Bank) | Jalandhar | Vishwas se Vikas tak | The first small finance bank in India, founded on 24 April, 2016. It was converted from the Capital Local Area Bank. |
Ujjivan Small Finance Bank | Bengaluru | Build a better life. | Established on 1 February 2017. Ujjivan Financial Services hold 80% of this bank’s stakes. |
Utkarsh Small Finance Bank | Varanasi | Aapki Umeed ka Khata | This small finance bank believes in people orientation, reliability, and the scalable and sustainable structure of the organisation. Process, culture and growth are its core values. |
Suryoday Small Finance Bank | Navi Mumbai | A bank of smiles. | This small finance bank offers many banking facilities. |
North East Small Finance Bank | Guwahati | Your doorstep banker. | In the northeast region of India, this small finance bank is first. It develops banking services to the remote locations of eight states of North East India and West Bengal. |
Conclusion
Hence, small finance banks are supporting a large population through facilitating various services related to banking. These are established for enhancing the effectiveness of financial services. There are many small finance banks in different states of the country.
