How Many Small Finance Banks Are Available In India?

By giving them access to financial services, small finance banks hope to empower marginalised groups in society, such as unorganised sectors, marginal farmers, micro and small firms, and small businesses. These banks' main goal is to meet the financial needs of underprivileged communities effectively.

 

However, they have to abide by the rules and laws set forth by the Indian government and the Reserve Bank of India. Like other commercial banks, these establishments provide banking services such as deposit acceptance and lending. Across the nation, there are currently some Small Finance Banks in operation. Examine the following list of small finance banks in India as of 2024.

                                                           

1. Unity Small Finance Bank (BharatPe) and Centrum Financial Services Limited

On August 25, 2021, Unity Small Finance Bank Limited was formally established. This non-governmental organisation has the proper registration with the Delhi Registrar of Companies. With a paid-up capital of ₹7,049,019,600, it has an authorised share capital of ₹40,000,000,000 which is way larger than any dhankesari lottery.

 

The bank primarily performs a variety of financial intermediation functions. 40, Basant Lok, Vasant Vihar, New Delhi, DL 110057, India is the address of its headquarters.

 

2. Shivalik Small Finance Bank

Also known as Shivalik Mercantile Co-operative Bank Ltd. Shivalik became the first small finance bank in India when it changed from being Shivalik Mercantile Co-operative Bank.

Established in 1998 by Mr. Yashvir Kumar Gupta, the bank was led by Mr. Suveer Kumar Gupta, who is currently an advisor to the board.

 

Mr. Gupta served as the firm's first MD and CEO. With more than 25 years of expertise in retail banking, Shivalik Bank uses Infosys Finacle for core and digital banking solutions and places a strong emphasis on technology and customer-centricity. As a National Financial Switch member, its cloud design allows for complete availability on retail payment platforms and scalable, economical expansion.

 

3. Jana Small Finance Bank

Also known as Janalakshmi Financial Services Pvt Ltd. An Indian private corporation is called Janalakshmi Financial Services Private Limited. 'Company limited by shares' is how it is registered. The authorised capital of the firm is Rs 12,700.0 lakhs, of which Rs 12,533.54 lakhs, or 98.689285%, have been paid up.

 

Currently operating, Janalakshmi Financial Services Private Limited is mostly focused on finance. The Bangalore (Karnataka) Registrar Office has the company's registration.

 

4. RGVN North East Microfinance Ltd

It was established on October 17, 2017, with the goal of reaching 5 lakh clients by that same year. The company's ambition was to create a major influence on the North Eastern region.

 

The goal of this programme was to increase access to possibilities for livelihood, education, and health. As of September 30, 2017, RGVN(NE)MFL, which has its headquarters in Guwahati, had 141 branches spread over seven Northeastern states: Assam, Arunachal Pradesh, Meghalaya, Nagaland, Tripura, West Bengal, and Sikkim.

 

With a remarkable one-time repayment percentage of 97.86%, this network managed a loan portfolio worth Rs. 693.31 crore and served almost 4.49 lakh customers.

 

5. Fincare Small Finance Bank / Disha Microfin Pvt Ltd

On July 21, 2017, Fincare Small Finance Bank opened for business after receiving its final licence under Section 22 of the Banking Regulation Act, 1949 from the Reserve Bank of India (RBI). Committed to facilitating access to finance, Fincare Small Finance Bank serves mass retail, micro & small enterprises, and the underbanked at the base of the economic pyramid.

 

The bank serves a wide range of consumer banking needs in 13 states with more than 500 banking locations and a staff of more than 5,000 people. Prestigious investors such as TA Associates, True North, Leapfrog Investments, Tata Opportunities Fund, SIDBI, Edelweiss Tokio Life, and Kotak Mahindra Life, among others, sponsor Fincare Business Services Limited, the holding company of the Fincare Small Finance Bank. Since its establishment in 2007.

 

6. The AU Small Finance Bank, AU Financiers India Ltd.

AU Financiers commenced operations as a Small Finance Bank (SFB) on April 19, 2017, having obtained its SFB licence in 2015. It was listed as a Fortune India 500 company and received Scheduled Bank status on November 1st of the same year.

 

Since becoming a bank after first operating as a Non-Banking Financial Company (NBFC), it has continuously concentrated on creating solutions that are suited to the changing demands of its clients.

 

The Bank has upheld the highest standard of compliance in its role as guardian of depositors’ money, solidifying its reputation as a reliable and well-run financial organisation. It is steered by the values of simplicity, advancement for all, inclusivity, and a feeling of urgency and action. By the way, do you know you can make money with probo app. You can give it a try if you want to.

 

7. ESAF Small Finance Bank (ESAF Microfinance)

In October 2015, the Reserve Bank of India kindly granted an in-principle licence to ESAF Microfinance and Investments Pvt. Ltd., enabling it to establish a new Small Finance Bank, after evaluating the substantial contributions of ESAF in the development of rural and underserved segments of the country.

 

On March 10, 2017, ESAF Small Finance Bank opened for business after meeting the requirements for licencing set forth by the Reserve Bank of India and operating under the RBI's final licence, which was granted in November 2016.

 

8. Utkarsh Small Finance Bank (Utkarsh Microfinance Private Ltd)

On April 30, 2016, Utkarsh Small Finance Bank Limited was founded as a public limited company in Varanasi, Uttar Pradesh. The Registrar of Companies granted it a Certificate of Incorporation.

 

In 2010, Utkarsh CoreInvest Limited, the firm's foundation entity, launched as a non-banking financial company, or NBFC, with the goal of providing microfinance solutions to the underprivileged communities in Uttar Pradesh and Bihar. It then changed to become an NBFC-MFI. The Banking Regulation Act of 1949 governs the Bank, which provides a variety of banking and financial services.

 

Conclusion

Here we have it, the best small finance institutions are distributing spicy, fierce portions of financial empowerment to every corner of this enormous, underbanked country that we call home.

 

From cola-truck financing in the baked regions of Rajasthan to piggery loans in the cold east of India, these money merchants are making sure no desire is left unfulfilled.

Of course, before the industry can truly say that its "mission accomplished" in the realm of financial inclusion, there are still many miles to go and figurative bridges to cross.