Small Finance Banks Their Headquarters and Heads

Small Finance Banks Their Headquarters and Heads

Small finance banks are a type of niche banks in India. Banks with a small finance bank license can provide basic banking service of acceptance of deposits and lending. The aim behind these to provide financial inclusion to sections of the economy not being served by other banks, such as small business units, small and marginal farmers, micro and small industries and unorganised sector entities.

REGULATIONS:

• The firms must have a capital of ₹100 crore. Existing non-banking financial companies (NBFC), micro-finance institutions (MFI) and local area banks (LAB)[Local area banks are non scheduled banks
• They were set up with the twin objectives of providing an institutional mechanism for promoting rural and semi urban savings and for providing credit for viable economic activities in the local areas
• They were established as public limited companies in the private sector
• They are promoted either by individuals , corporate, trusts or societies
• The minimum paid up capital of such banks was Rs. 5 crores
• The promoter’s contribution should be at least Rs. 2 crores
• Local area banks can operate and open their branches in a maximum of three geographically contiguous districts.
• They are governed by the provisions of Reserve Bank of India act 1934, Banking Regulation act 1949 and other relevant statutes.
• They are to be registered as public limited companies under the Indian companies act 1956

LIST OF SMALL FINANCE BANK APPROVED BY RBI