List of Small Finance Banks In India 2024: Small Finance banks in India with Headquarters and Taglines: Small finance banks’ main goal is to help underprivileged and disadvantaged groups in society, such as small businesses, marginal farmers, micro- and small businesses, and unorganized authorities, gain access to financial services. Small finance banks’ main goal is to provide underserved segments of society with efficient financial services. They must, however, abide by the laws and regulations set forth by the Reserve Bank of India and the Indian government. Like other commercial banks, these organizations offer banking services like lending and accepting deposits. There are currently 12 small financing institutions spread out around the country. Go through the list Of Small Finance Banks In India 2024 provided here for various competitive exam preparation.
What are Small Finance Banks / SFBs?
Small Finance Banks in India: Indian specialty banks include SFBs. Small finance banks (SFB) licensed banks can offer the fundamental banking services of accepting deposits and lending. These are intended to help the unorganized 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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How Many Small Finance Banks In India 2024?
Number of Small finance banks in India: As of 2024, there are 12 Small Finance Banks in India. The list of Small Finance Banks In India 2024 is given below.
First Small Finance Bank In India
Capital Small Finance Bank, formerly known as Capital Local Area Bank, was established in April 2016 as India’s first small finance bank and is based in Jalandhar.
List of Small Finance Banks In India 2024
Small finance banks in India with headquarters and taglines are tabulated below..
Top Small Finance Banks In India 2024
| Small Finance Banks in India With Headquarters and Taglines | ||||
| S.No | Small Finance Banks In India | MD/CEO | Headquarters | Tagline |
| 1 | Capital Small Finance Bank | Sarvjit Singh Samra | Jalandhar, Punjab | Vishwas Se Vikas Tak |
| 2 | Equitas Small Finance Bank | PN Vasudevan | Chennai, Tamil Nadu | It’s Fun Banking |
| 3 | Utkarsh Small Finance Bank | Govind Singh | Varanasi, UP | Apki Umeed Ka Khata |
| 4 | Suryoday Small Finance Bank | Baskar Babu Ramachandran | Belapur, Navi Mumbai | A Bank of Smiles |
| 5 | Ujjivan Small Finance Bank | Ittira Davis | Koramangala, Bengaluru, Karnataka | Bharosa, Aap Ke Bharose Par |
| 6 | ESAF Small Finance Bank | K. Paul Thomas | Thrissur, Kerala | Joy of Banking |
| 7 | AU Small Finance Bank | Sanjay Agarwal | Jaipur, Rajasthan | Chalo Aage Badhe |
| 8 | Fincare Small Finance Bank | Rajeev Yadav | Bengaluru, Karnataka | Banking on More |
| 9 | North East Small Finance Bank | Rupali Kalita | Guwahati, Assam | Your DoorStep Banker |
| 10 | Jana Small Finance Bank | Ajay Kanwal | Bengaluru | Paise Ke Kadar |
| 11 | Shivalik Small Finance Bank Ltd | Anshul Swami | Noida, Uttar Pradesh | Empowering Tomorrow |
| 12 | Unity Small Finance Bank Ltd | Inderjit Camotra | New Delhi | India’s 1st Truly Digital Bank |
Capital Small Finance Bank (India’s First Small Finance Bank) – List Of Small Finance Banks In India 2024
- Capital Small Finance Bank (formerly Capital Local Area Bank Ltd) is India’s first small finance bank that started its banking operations in April 2016 in Jalandhar, Punjab.
- The bank got its license as a Small Finance Bank from the Reserve Bank of India (RBI) in March 2016.
- Managing Director of Capital Small Finance Bank: Sarvjit Singh Samra
- Headquarters of Capital Small Finance Bank: Jalandhar, Punjab.
- Tagline: Vishwas Se Vikas Tak
Equitas Small Finance Bank – List Of Small Finance Banks In India 2024
Formerly Equitas Holdings P Limited started its banking operations with 3 branches in Chennai in September 2016. The bank got its license as a Small Finance Bank from the Reserve Bank of India (RBI) in July 2016.
- PN Vasudevan is the Managing Director & CEO of Equitas Small Finance Bank.
- Headquarters of Equitas Small Finance Bank – Chennai, Tamil Nadu.
- Tagline – It’s Fun Banking
Utkarsh Small Finance Bank – List Of Small Finance Banks In India 2024
- It was formerly known as Utkarsh Micro Finance
- It started its operations with five branches across Varanasi, Patna, Delhi-NCR, and Nagpur in January 2017.
- The bank got its license as a Small Finance Bank from the Reserve Bank of India (RBI) in November 2016.
- Govind Singh is the Managing Director & CEO of Utkarsh Small Finance Bank.
- Headquarters of Utkarsh Small Finance Bank: Varanasi, UP
- Tagline: Apki Umeed Ka Khata
Suryoday Small Finance Bank – List Of Small Finance Banks In India 2024
Suryoday Micro Finance Ltd started its banking operation in January 2017 in Belapur, Navi Mumbai. The bank got its license as a Small Finance Bank in November 2016.
- Baskar Babu Ramachandran is the Managing Director & CEO of Suryoday Small Finance Bank.
- Headquarter of Suryoday Small Finance Bank: Belapur, Navi Mumbai.
- Tagline: A Bank of Smiles.
Ujjivan Small Finance Bank – List Of Small Finance Banks In India 2024
A subsidiary of Ujjivan Financial Services Ltd) started its banking operations in February 2017 in Bengaluru, Karnataka. The bank got its license as a Small Finance Bank in November 2016.
- Ittira Davis is the Managing Director & CEO of Ujjivan Small Finance Bank.
- Headquarter of Ujjivan Small Finance Bank: Koramangala, Bengaluru, Karnataka.
- Tagline: Bharosa, Aap Ke Bharose Par
ESAF Small Finance Bank – List Of Small Finance Banks In India 2024
It was formerly known as ESAF Microfinance and Investments Private Ltd.
- It started its banking operations in Thrissur, Kerala in March 2017.
- The bank got its license as a Small Finance Bank from the Reserve Bank of India (RBI) in November 2016.
- Headquarter of ESAF Small Finance Bank: Thrissur, Kerala.
- ESAF will be the first bank to be given a banking license in Kerala since its independence.
- Tagline: Joy of Banking
Note: On 28 Dec 2018, Esaf Small Finance Bank received the Reserve Bank approval to operate as a scheduled bank.
AU Small Finance Bank – List Of Small Finance Banks In India 2024
- It started its banking operation as a Small Finance Bank in April 2017.
- The bank got its license in December 2016.
- Sanjay Agarwal is the Managing Director & CEO of Au Small Finance Bank.
- Headquarter of Au Small Finance Bank: Jaipur, Rajasthan.
- Tagline: Chalo Aage Badhe
Fincare Small Finance Bank – List Of Small Finance Banks In India 2024
- It was previously known as Disha Microfin Limited and started its banking operations in September 2017, with about 25 operational branches across Gujarat, Tamil Nadu, Karnataka, and Andhra Pradesh.
- Rajeev Yadav is the Managing Director & CEO of Fincare Small Finance Bank.
- Headquarters: Bengaluru, Karnataka.
- Tagline: Banking on More.
North East Small Finance Bank – List Of Small Finance Banks In India 2024
- The Rashtriya Gramin Vikas Nidhi Microfinance Limited-North East (RGVNMFL-NE), the promoter of North East Small Finance Bank, got the license of Small Finance Bank from the Reserve Bank of India (RBI) in March 2017.
- MD: Rupali Kalita
- Headquarters of North East Small Finance Bank: Guwahati, Assam.
- Tagline: Your DoorStep Banker
Jana Small Finance Bank – List Of Small Finance Banks In India 2024
- Established: March 2018.
- Headquarters of Jana Small Finance Bank: Bengaluru
- Tagline: Paise Ke Kadar
- MD & CEO: Ajay Kanwal
Small Finance Banks in India PDF
List Of Small Finance Banks In India 2024 PDF: Check the List Of Small Finance Banks In India 2024 along with their details in the PDF given below.
List Of Small Finance Banks In India 2024 PDF
List Of Small Finance Banks In India 2024: Objectives
In India, small finance banks were established to help the country’s disadvantaged and underserved citizens. These banks are permitted to lend money to deserving people and take deposits from them. The SFBs in India strive to achieve the following goals:
- Through high-tech, low-cost operations, to improve financial inclusion and encourage small business units, small and marginal farmers, micro and small companies, and unorganized sectors.
- To provide particular information about the roughly 90% of small enterprises without connections to regulated financial institutions.
- To determine and increase access to financial services for groups that other commercial and public sector banks have overlooked.
List Of Small Finance Banks In India 2024: Features
- Residents who have at least 10 years of experience in banking, finance, businesses, and societies are qualified to serve as promoters for the establishment of small finance banks.
- Small finance banks can be formed by converting the operations of NBFCs (Non-Banking Financial Companies), MFIs (Microfinance Institutions), and LABs (Local Area Banks).
- Small finance banks need prior approval for branch growth for the first three years. They must reflect local culture and atmosphere.
- They must primarily perform fundamental banking tasks including receiving deposits from the poor and deserving group and giving advances to them. The SFBs are not allowed to set up subsidiaries to carry out non-banking financial operations.
Provisions Regulating SFBs
SFB Regulation Provisions: The following Acts’ provisions apply to the Small Finance Banks. Also, check the details of the List Of Small Finance Banks In India 2024 provided above.
- 1949 Banking Regulation Act
- The 1999 Foreign Exchange Management Act
- 1934 Reserve Bank of India Act
- The 2007 Payment & Settlement Systems Act
- Regulatory Act of 2005 Concerning Credit Information Companies
- Act of 1961 Establishing the Deposit Insurance and Credit Guarantee Corporation
- Other pertinent statutes, directives, prudential rules, and other regular instructions and/or guidance from the RBI and other regulators.
The SFBs won’t be accorded the status of scheduled banks until they start operating and are deemed suitable in accordance with Section 42 of the Reserve Bank of India Act, 1934. Also, check the details of the List Of Small Finance Banks In India 2024 provided above.
Minimum Capital Requirement For Small Finance Banks In India
Small finance banks are required to have a minimum paid-up equity capital of 200 crore (US $27 million). A small finance bank must continuously maintain a capital adequacy ratio of at least 15% of its risk weighted assets (RWA), subject to any higher percentage that the RBI may from time to time impose. This requirement is due to the inherent risk involved. At least 7.5% of RWAs should be allocated to Tier I capital. A maximum of 100% of all Tier I capital should be allocated to Tier II capital. Small financing banks are not typically expected to deal with complex products, hence the Basel Committee’s basic methods will be used to calculate the capital adequacy ratio. Also, check the details of the List Of Small Finance Banks In India 2024 provided above.
Difference Between Small Finance Banks And Payment Banks
Check the difference between the small finance banks and payment banks in India in the table given below. Also, check the details of the List Of Small Finance Banks In India 2024 provided above.
| Small Finance Banks | Payments Bank |
| Small Finance Banks are financial institutions that want to use routine banking operations to meet the financial requirements of underprivileged groups. | A payments bank functions similarly to other banks but on a smaller scale and without taking on any credit risk. It can do the majority of banking tasks, but it cannot grant credit or advance loans. |
| By providing credit to small business units, small and marginal farmers, micro and small industries, and other unorganized sector entities, these have been established to promote financial inclusion. | By offering modest savings accounts and payment/remittance services to migrant laborers, low-income households, small enterprises, and other unorganized sector entities, payments banks’ main goal will be to promote financial inclusion. |
| Small finance banks are required to have a minimum paid-up equity capital of Rs. 100 crore. | The payments bank’s minimum paid-up equity capital is Rs. 100 crore. |
| merely begin all primary banking operations in the underserved area. | Credit cards cannot be issued, however ATM/debit cards can; mobile banking is available. |
| Both fixed deposit (FD) and recurring deposit (RD) time deposits are accepted. | These do not accept time deposits like FD and RD. |
| They can offer small loans | They cannot offer loans |
| There are no limitations on how tiny financial banks can operate. | The payments bank is not permitted to establish subsidiaries to engage in non-banking financial services. |
| India’s first small finance bank, Capital Small Finance Bank, debuted in 2016. | The RBI granted a payments bank license to Airtel Payments Bank in 2016, making it the country’s first organization to do so. |
FAQs – List Of Small Finance Banks In India 2024
Q. What are Small Finance Banks?
Small Finance Banks in India: Indian specialty banks include SFBs. Small finance banks (SFB) licensed banks can offer the fundamental banking services of accepting deposits and lending. These are intended to help the unorganized sector, small businesses, marginal farmers, and other economic sectors that aren’t currently served by other banks, gain access to financial services.
Q. Are Small Finance Banks subject to RBI regulation?
Yes. Microfinance banks are governed by the Reserve Bank of India, along with all other financial organizations. Microfinance banks are non-banking financial institutions that offer low-interest loans to private citizens. The Banking Regulation Act of 1949’s Section 45AA has given these banks authorisation to conduct business.
Q. How many small finance banks in India 2024?
In India, there are 12 small finance banks as of 2024. These banks offer financial services to MSMEs, SMEs, unorganized industries, small companies, and other underserved groups in India. In the upcoming years, there may be a rise in SFBs.
Q. What are the workings of small finance banks in India?
Small Finance Banks engage in fundamental banking functions like deposit taking and acceptance in addition to lending money to underserved and unserved groups such unorganized firms, small businesses, marginal farmers, tiny industries, and microindustries in India.
Q. What amount of minimum paid-up capital is needed to establish SFBs?
The minimum paid-up capital for SFB establishment is INR 100 crore.
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