Small Finance Banks provide basic banking services like accepting deposits and providing limited credit. Their target audience primarily comprises farmers, micro and small industries as well as other unorganised sectors in India. Recently, RBI granted preliminary approval to 10 applicants seeking to establish such banks within India.
Below is a comprehensive listing of Small Finance banks created as part of the 2015 RBI initiative:
Small Finance Banks (SFBs) differ from Payment banks in that SFBs can extend small loans but not larger loans, while Payment banks cannot.
Small Finance banks aim to promote financial inclusion across the nation. Their main goals include:
Basic banking activities including accepting deposits and offering low cost credit loans to small business units, unorganised sector companies, farmers, micro and small industries is what these banks specialize in. If you want more insight, here is a list of Top 10 Foreign Banks in India.
Small Finance Banks may not offer larger loan amounts; instead they face challenges competing against traditional and big banks in India. While Small Finance banks are an initiative to strengthen credit marketplace further, do you think these small lenders have what it takes to remain strong against public sector banks and thrive in India? Share your thoughts here.
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