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

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

Active —–

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