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How Many Small Finance Banks are There in India

How Many Small Finance Banks are There in India

Edited By Team Careers360 | Updated on Jun 12, 2023 12:32 PM IST

Introduction

There are 10 small finance banks in India. Business strategies and project reports must be included with applications from those seeking small finance bank licences. The business plan must explain how the bank intends to accomplish the goals for creating small finance banks and, in the case of an NBFC or MFI applicant, how the NBFC or MFI's current operations will be merged into the bank or sold. The candidate should have a realistic and workable business plan. In case of deviation from the stated business plan after the issue of the licence, RBI may consider and restrict the bank’s expansion, effecting change in management and imposing other penal measures as may be necessary.

How do microfinance institutions operate?

Background wave

Financial inclusion includes supporting the less fortunate segment of society's finances.

Supplying basic banking services including deposits and the flow of credit across the country.

assisting other financial institutions in creating a setting where services are offered equally to all societal groups.

Business requirements for a candidate

Business strategies and project reports must be included with applications from those seeking small finance bank licences. The business plan must explain how the bank intends to accomplish the goals that led to the creation of small finance banks and, in the case of an NBFC or MFI applicant, how the NBFC or MFI's current operations will be merged into the bank or sold off. The candidate should have a realistic and workable business plan. After granting a licence, if the business plan is not followed, RBI may consider restricting the bank's growth, changing the management, and enforcing other sanctions as may be warranted.

Ten small financing banks exist across the country

Small Finance Bank of AU

"Chalo Aage Badhe" is the tagline for this bank. It was first founded in 1997 as AU Financiers Ltd, a vehicle finance firm, then on April 19, 2017, it changed its status to become a finance bank.

Bank for Small Business Equitas

With the tag It's fun banking, the headquarters are in Chennai.

It is a division of Equitas Holdings Ltd. and was founded in 2016 as a microfinance lender.

Small Finance Bank of ESAF

Headquarters with the tag Joy of Banking is in Thrissur, Kerala.

It was founded in March 2017 as a small finance bank. This financial institution offers services like loans, deposits, and money lending.

Small Finance Bank Fincare

A New Era in Smart Banking Begins is the tagline of the Ahmedabad headquarters.

It combines a wide range of innovative banking products and services, including savings and current accounts, fixed deposits, microloans, NRI fixed deposits, cash overdrafts, loans against property, loans for gold and two-wheelers, and loans against property.

Janalakshmi Small Finance Bank

Likho Apni Kahani is the tag for the Bengaluru headquarters. It was established on March 28, 2018, and it participates in the business activities of financial services. It changed its name from Capital Local Area Bank.

Bank of Ujjivan Small Finance

With the slogan "Build a better life," the head office is in Bengaluru.

It was founded on February 1st, 2017. 80% of this bank's holdings are held by Ujjivan Financial Services.

Small Finance Bank of Utkarsh. Aapki Umeed ka Khata's head office is in Varanasi.

This small financing bank values a focus on people, dependability, and an organisation with a scalable and sustainable structure. Its main values are process, culture, and growth.

Small Finance Bank of Suryoday

The headquarters, dubbed "A bank of smiles," is in Navi Mumbai.

This tiny financing bank provides a wide range of banking services.

Capital Small Finance Bank

With the slogan "Vishwas se Vikas tak," the head office is located in Jalandhar, Ahmedabad. It was established on April 24, 2016, and is the country's first small finance bank.

Small Finance Bank of the North East

The Head office has the title Your doorstep banker and is located in Guwahati.

This tiny finance bank is the first in India's northeast. It expands banking services to eight states in North East India and West Bengal that are in rural areas.

Conclusion

These banks are intended to help the unorganised sector, small businesses, marginal farmers, and other economic sectors that aren't currently served by other banks, gain access to financial services.

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