History of Small Finance Banks in India
Small Finance Banks are a new category of Banks announced by the RBI in July 2014, when the draft guidelines for small finance banks was made public.
By February 2015, RBI had received applications from 72 applicants and an external advisory committee headed by Usha Thorat was constituted to evaluate the applicants.
The 10 companies that received licenses today come from this group of applicants.
Benefits of Small Finance Bank Licenses
Small Finance Banks licenses are more restrictive than a regular bank license, such as one given to State Bank of India (SBI) or ICICI Bank.
While small finance banks can undertake fundamental banking activities such as deposit taking and lending, they are not allowed to set up subsidiaries.
Also the loan ticket size is much smaller in Small Finance Banks compared to regular banks.
RBI has mandated that the activities of promoters of small finance banks should not be mixed with banking operations.
Au Financiers India Ltd – A Jaipur based NBFC which currently provides financing for cars and heavy vehicles in the state of Rajasthan
Capital Local Area Bank Ltd – A Jalandhar based Local Area Bank having operations in the state of Punjab
Disha Microfin Pvt Ltd – A MFI headquartered in Ahmedabad and having microfinance operations predominantly in the West of India
Equitas Holdings Pvt Ltd – A diversified microfinance company with headquarters in Chennai and having operations in microfinance and micro-housing loans
ESAF Microfinance – The Kerala focused MFI has it’s headquarters in Chennai and has done pioneering work in the state of Tamil Nadu
Janalakshmi Financial Services Pvt Ltd, Headquartered in Bangalore, Janalakshmi is one of India’s largest microfinance companies
RGVN North East Microfinance Ltd is a MFI based in North East India with it’s headquarters in Guwahati, Assam
Suryoday Microfinance Pvt Ltd is a MFI based in Mumbai with operations in Maharashtra, Gujarat and Orissa.
Ujjivan Financial Services Pvt Ltd – A Bangalore based MFI and one of the first microfinance companies to scale up operations in urban India
Utkarsh Microfinance Pvt Ltd with headquarters in Varanasi and operations spread across the states of Uttar Pradesh
Small Finance Banks are a new category of Banks announced by the RBI in July 2014, when the draft guidelines for small finance banks was made public.
By February 2015, RBI had received applications from 72 applicants and an external advisory committee headed by Usha Thorat was constituted to evaluate the applicants.
The 10 companies that received licenses today come from this group of applicants.
Benefits of Small Finance Bank Licenses
Small Finance Banks licenses are more restrictive than a regular bank license, such as one given to State Bank of India (SBI) or ICICI Bank.
While small finance banks can undertake fundamental banking activities such as deposit taking and lending, they are not allowed to set up subsidiaries.
Also the loan ticket size is much smaller in Small Finance Banks compared to regular banks.
RBI has mandated that the activities of promoters of small finance banks should not be mixed with banking operations.
Au Financiers India Ltd – A Jaipur based NBFC which currently provides financing for cars and heavy vehicles in the state of Rajasthan
Capital Local Area Bank Ltd – A Jalandhar based Local Area Bank having operations in the state of Punjab
Disha Microfin Pvt Ltd – A MFI headquartered in Ahmedabad and having microfinance operations predominantly in the West of India
Equitas Holdings Pvt Ltd – A diversified microfinance company with headquarters in Chennai and having operations in microfinance and micro-housing loans
ESAF Microfinance – The Kerala focused MFI has it’s headquarters in Chennai and has done pioneering work in the state of Tamil Nadu
Janalakshmi Financial Services Pvt Ltd, Headquartered in Bangalore, Janalakshmi is one of India’s largest microfinance companies
RGVN North East Microfinance Ltd is a MFI based in North East India with it’s headquarters in Guwahati, Assam
Suryoday Microfinance Pvt Ltd is a MFI based in Mumbai with operations in Maharashtra, Gujarat and Orissa.
Ujjivan Financial Services Pvt Ltd – A Bangalore based MFI and one of the first microfinance companies to scale up operations in urban India
Utkarsh Microfinance Pvt Ltd with headquarters in Varanasi and operations spread across the states of Uttar Pradesh
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