Small Finance Banks in India | Features of small finance bank, Micro finance and MSME loans - Capital Miner

Small Finance Banks are financial institutions that have the license to provide basic banking services by accepting deposits and lending. The aim of these banks is to provide financial inclusion to those sections of the economy which is not served by other banks like small business units, small and marginal farmers, micro and small industries and the unorganized sector. Given below 10 major small private banks details:

1) Ujjivan small finance bank:

Ujjivan small finance bank is the newest Indian private sector scheduled small finance bank licensed under Section 22 (1) of the Banking Regulation Act, 1949, headquarters at, Bengaluru, Karnataka, India, founded on 1^st Feb 2017, bearing a network of over 464 branches across Indian cities…Holding net equity ₹4,177 crores (US$641 million) and total assets ₹9,473 crores (US$1.45 billion) as on 2018..dealing with savings account, current account, fixed deposits, recurring deposits, Micro Loans, Home Loans & Small Business Loans, internet banking, mobile banking, biometric enabled Ujjivan SFB ATM and New A/C opening fast service with Aadhaar enabled KYC..….Visit site

2) Jana small finance bank:

Jana small finance bank is the newest Indian private sector scheduled small finance bank licensed under Section 22 (1) of the Banking Regulation Act, 1949, headquarters at, Bengaluru, Karnataka, India, founded in 2007, got banking license in 2017 & operating from 2018, bearing a network of nearly 500 branches across Indian cities… Currently, post the transition phase, the bank is enabling its existing 45 lakh customers across 19 states in India to access banking services. It has Capital Adequacy Ratio (CAR) of about 35 percent and a loan book of INR 76 billion as on March 31, 2018. By 2020, the bank aspires to add four million customers..…..Visit site.

3) Equitas small finance bank:

Equitas small finance bank is the newest Indian private sector scheduled small finance bank licensed under Section 22 (1) of the Banking Regulation Act, 1949, headquarters at, Chennai, Tamilnadu, India, founded in 2007, bearing a network of over 412 branches across Indian cities…Holding net income ₹31.35 crores (US$5 million) and total equity ₹9,473 crores ₹4,891.98 crores (US$751 million) as on 2018..dealing with savings account, current account, fixed deposits, recurring deposits, Micro Loans, Home Loans & Small Business Loans, Investment & Insurance services, Equitas debt cards..…..Visit site.

4) AU small finance bank:

AU small finance bank is the newest Indian private sector scheduled small finance bank licensed under Section 22 (1) of the Banking Regulation Act, 1949, headquarters at, Jaipur, Rajasthan, India, founded in 1996, bearing a network of over 396 branches, 84 asset centres, 49 business correspondents, 15 offices and 485 ATMs across Indian cities…Holding net income ₹292.04 crores (US$45 million) and total equity ₹17,655 crores (US$2711.15 million) as on 2018..dealing with vehicle finance, low ROI micro loans, deposits services, payment / transaction banking, distribution of third party products, and additional loan products thereby positioning itself as a holistic financial products and services provider.…Visit site.

5) Capital small finance bank:

Capital small finance bank is the newest Indian private sector scheduled small finance bank got licensed under Section 22 (1) of the Banking Regulation Act,1949, in 2016, headquarters at, Jalandhar, Punjab, India, founded in 2000, bearing a network of over 100 branches across Punjab & intend to expand in other states..dealing with Savings Account, Current Account, Term Deposit, Loans, NRI banking, Forex, Insurance, Sms banking

..…..Visit site.

6) Fincare small finance bank:

Fincare small finance bank(Disha microfin) is the newest Indian private sector scheduled small finance bank licensed under Section 22 (1) of the Banking Regulation-Act-1949, from June 2017, headquarters at, Bengaluru, Karnataka,India, bearing a network of over 300 branches, across Indian cities…looking to increase its overall loan portfolio from the current Rs 2899 to Rs 3500 crore and the deposit base from the present Rs 1455 to Rs 2000 crore in FY19...dealing with Savings Account, Current Account, Fixed Deposit, NRI banking, Loan against property & gold, Micro loans & Institutional finance..…Visit site.

7) ESAF small finance bank:

ESAF small finance bank is the newest Indian private sector scheduled small finance bank got licensed under Section 22 (1) of the Banking Regulation Act,1949, in 2017, headquarters at, Thrissur, Kerala, India, bearing a network of over 400 branches across Indian cities…dealing with..Home Loan - Gruha Sudhar & Gruha Nirman, Income Generation Loan, Housing Loan, Home Improvement Loan, Income Generation Loan (Dairy), . Ultra Poor Loan, . Micro Enterprise Loan – Dairy (MELD), Mobile Loan,Grihajyothi Loan, Suryajyothi Loan, Vidhyajyothi Loan, Jeevandhara Loan, Nirmal Loan, General Loan, Agriculture Loan, Income Generation Loan (Special).…Visit site.

8) North East small finance bank:

North East small finance bank / RGVN (North East) Microfinance Ltd (launched by Tata Trusts) is the newest Indian private sector scheduled small finance bank licensed under Section 22 (1) of the Banking Regulation-Act-1949, from March 31, 2017, headquarters at Assam,India, bearing a network of over 28 branches, across 8 Northeastern states of India…looking to increase more 80 branches...dealing with Savings Account, Current Account, Fixed Deposit , Micro loans, Institutional finance, Insurance..…Visit site.

9) Suryoday small finance bank:

Suryoday small finance bank is the newest Indian private sector scheduled small finance bank licensed under Section 22 (1) of the Banking Regulation-Act-1949, from 23 Jan 2017, headquarters at Mumbai, Maharashtra, India, founded in 2008, bearing a network of over 235 branches across Indian cities...dealing with Savings Account, Current Account, Fixed Deposit, Recurring Deposit, MFI loans, Vikas Loans, Shopkeeper Loans, Investment & Insurance, NRI Banking, Digital banking..…Visit site.

10) Utkarsh small finance bank:

Utkarsh small finance bank is the newest Indian private sector scheduled small finance bank licensed under Section 22 (1) of the Banking Regulation-Act-1949, from 25 Nov 2016, headquarters at Varanasi, Uttar Pradesh, India, founded in 2009, bearing a network of branches across 11 Indian states, total assets ₹4523 crore in 2018...dealing with Savings Account, Current Account, Fixed Deposit, Recurring Deposit, MSME loans, Investment & Insurance, NRI Banking, Digital banking, Remittance facility..…Visit site.

What is Payment bank ?

Payments banks is a new model of banks conceptualized by the Reserve Bank of India (RBI). These banks can accept a restricted deposit, which is currently limited to ₹100,000 per customer and may be increased further. These banks cannot issue loans and credit cards. Both current account and savings accounts can be operated by such banks. Payments banks can issue services like ATM cards, debit cards, net-banking and mobile-banking.

On 19 August 2015, the Reserve Bank of India(RBI) gave "in-principle" licenses to eleven entities to launch payments banks.

Important features of Payment banks.

1) Payment banks can open small savings accounts accept deposits of up to Rs.1 lakh per individual.

2) Payment banks can issue debit cards but they aren’t eligible to provide credit card facilities.

3) Payments banks are allowed to set up their own ATMs (Automated Tailor Machines).

4) Payment banks can’t lend money to the people.

5) Payment banks can’t accept fixed deposits (FD), term deposits, recurring deposits & any non-resident Indian deposits.

6) Payment banks will provide banking services to migrant labor workforce, low income house-holds, small businesses, other unorganized sector entities and other users.

Given below 11 Payment banks in India

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1) Airtel Payments Bank Limited…Headquarters- New Delhi, India.