Top 10 Small Finance Banks in India

A bank is a financial institution where customers can deposit money safely and securely. A customer can open savings or a checking account. Other financial services include retail banking, private banking, advisory, insurance etc. Also, the banks are categorised into large and small finance banks. So let's know what are the Top 10 Small Finance Banks in India.

What are Small Finance Banks?

Banks with SFB licenses are small finance banks. With this license, a bank can offer basic banking services like depositing money. The objective of such banks is to help small businesses, and people from the unorganised sector.

A small finance bank must register as a public limited company under the Companies Act 2013. And also follow the rules and regulations set by the SEBI.

Benefits

Financial Inclusion: It means providing services to people working in rural areas.

Financial Literacy: Educating people in rural areas. Helping them understand the financial terms.

Banking Services at Doorstep: Under this benefit, the bank provides services at the doorstep.

Minimum Balance: The balance requirements are less. People can have low-balance accounts. While the banks that are in the urban areas want their customers to have money in their accounts so that they can make transactions

Features

RBI Regulated: All the banks follow the rules and regulations of RBI.

Major Sectors: The main focus of such banks is on people working in agriculture and small organisations.

Capital Requirements: Need to have an equity capital of Rs 200 crore.

Offering Loans: Another feature of such banks is that they offer loans at a reasonable rate. And helping customers in case of emergency.

Documentation Simplification: Simplify the documentation process and help customers in  KYC. Customers can easily open a bank account. Also, the maintenance charges are less.

Savings Schemes: Offer different banking schemes where people can deposit the products.

List of Top Small Finance Banks

1. Suryoday Small Finance Bank

2. Shivalik Small Finance Bank Limited.

3. Jana Small Finance Bank.

4. Bandhan Financial Services Limited.

5. Capital Small Finance Bank.

6. AU Small Finance Bank.

7. Fincare Small Finance Bank.

8. Utkarsh MIcrofinance Private Ltd.

9. Suryoday Microfinance Private Ltd.

10. Equitas Small Finance Bank.

Suryoday Small Finance Bank

The bank offers a variety of products. More than 30 lakh customers have their accounts in this bank. Its presence is in 15 states. Around 7700+ employees work in this bank. The aim is to provide personal assistance to the customers. Also understanding their perspective and helping them in staying safe from unauthorised people.

Also, The Suryoday Small Finance Bank provides fixed deposits at the rate of 9.10% for senior citizens. 

Shivalik Small Finance Bank Limited

The main benefit of Shivalik Small Finance Bank is it provides small business loans. The customer can take loans at a small amount and can pay accordingly. Its registration is done with DICGC. Customers can do FD for both long and short term.

Jana Small Finance Bank

The main office is in Bengaluru. Follows the rules and regulations of the Reserve Bank of India (RBI). The customers can avail of both gold and home loans. Around 278 branches are there in rural areas. Having customers of more than 12 million.

Bandhan Financial Services Limited

Started on August 03, 1995. Bank that manages the investments. It also has a subsidiary of BFSL. Have corporate governance. Also provides proper results and reports. And manage the unpaid and unclaimed dividends. Shows the shareholding pattern as well.

Capital Small Finance Bank

Provides innovative banking solutions. Also gives LOAN insurance to the customers. Manages the customer portfolio very well. And also there is a consistent track record of growth.

AU Small Finance Bank

The benefit of AU Small Finance is it offers Video Banking Services. Customers can resolve their queries on video calls. For businessmen the feature of business banking is available. A total of 2383 branches are there in India. Customers can also avail mobile banking and internet banking.

Fincare Small Finance Bank

For child education, it offers a child education program. Also, have a banking app where people can manage their accounts comfortably.  Products are savings accounts, deposits, loans and others. 

Utkarsh Small Finance Bank

The banking services that Utkarsh small banks offer are loans, accounts, deposits and investments. Also provides online banking services to which people can add money to their accounts. Can make online transactions easily.

Equitas Small Finance Bank

This finance bank provides loans to people in rural areas at a low interest rate. The main office is in Chennai. Specifically in terms of loans it provides personal loans.

Conclusion

Although it depends upon the customer's choice to select the bank. Every bank comes with pros and cons. Having such information on the List of the Top 10 Small Finance Banks in India is helpful.