FINCARE SFB TO MERGE WITH AU SFB
SCHEME OF AMALGMATION OF FINCARE SFBÂ WITH AU SFBÂ
Dated 11.03.2024 : On 4th, March 2024 , Reserve Bank of India gave its formal approval for a scheme for Amalgamation submitted by Fincare Small Finance Bank and AU Small Finance Bank .Â
As per the scheme ,  shareholders of Fincare SFB will receive 579 equity shares in AU SFB for every  2,000 equity shares held in Fincare SFB .Â
All the branches of Fincare Small Finance Bank Ltd. will function as branches of AU Small Finance Bank Ltd. with effect from April 01, 2024. Â
On October 29, 2023, the Board of Directors of both AU SFB and Fincare SFB had approved the merger, and the ‘Scheme of Amalgamation’ was later approved by their respective shareholders at their meetings  on November 27, 2023, and November 24, 2023, respectively. On January 23, 2024, the proposed merger scheme also received the approval the Competition Commission of India ("CCI") under the provisions of
Section 31(1) of the Competition Act, 2002.
With the RBI's approval, Fincare SFB will merge into AU SFB effective from 1st April 2024 and shareholders  of Fincare SFB will receive shares of AU SFB in exchange for their shares in Fincare SFB at the approved  share swap ratio. All employees of Fincare SFB will become part of the AU SFB family
About AU Small Finance Bank
AU Small Finance Bank Limited (AU SFB) is a scheduled commercial bank and has established itself as the  largest SFB in India since starting its banking journey in April 2017. Established in 1996 by Mr. Sanjay Agarwal, a first-generation entrepreneur, AU SFB boasts a 28 years-legacy with deep understanding of the  rural and semi-urban markets and customer segments.Â
The Bank operates from 1,049 banking touchpoints across 21 States & 3 Union Territories serving 46.8 Lac  customers with an employee base of 28,904 employees. As on 31st Dec’23, the Bank has a net worth of  ₹12,167 Crore, deposit base of ₹80,120 Crore, Gross Advance of ₹67,624 Crore and a Balance sheet size  of ₹1,01,176 Crore.Â
​
About Fincare Small Finance Bank
Fincare Small Finance Bank is a ‘digital-first’ small finance bank offering banking services through banking  outlets, ATM, WhatsApp, Video Banking, Mobile Banking, Internet Banking and website Chatbots.  convenience for customers.
​
Fincare Small Finance Bank commenced banking operations on 21st July 2017 under Section 22 of the Banking Regulation Act, 1949. It was included in the Second Schedule to the RBI Act, 1934 published in the Gazette of India dated April 13, 2019. As of December 31, 2023, Fincare Small Finance Bank’s Gross Loan Portfolio amounted to ₹13,352 Crore, while Deposits reached ₹9,734 Crore. The Bank hasÂ
 a customer base exceeding 59 Lakhs+, supported by over 14,800 employees. With a widespread presence, the Bank boasts 1,303 touch points strategically located across  20 states and 3 Union Territories
Dated 11.03.2024 : On 4th, March 2024 , Reserve Bank of India gave its formal approval for a scheme for Amalgamation submitted by Fincare Small Finance Bank and AU Small Finance Bank .Â
As per the scheme ,  shareholders of Fincare SFB will receive 579 equity shares in AU SFB for every  2,000 equity shares held in Fincare SFB .Â
All the branches of Fincare Small Finance Bank Ltd. will function as branches of AU Small Finance Bank Ltd. with effect from April 01, 2024. Â
On October 29, 2023, the Board of Directors of both AU SFB and Fincare SFB had approved the merger, and the ‘Scheme of Amalgamation’ was later approved by their respective shareholders at their meetings  on November 27, 2023, and November 24, 2023, respectively. On January 23, 2024, the proposed merger scheme also received the approval the Competition Commission of India ("CCI") under the provisions of
Section 31(1) of the Competition Act, 2002.
With the RBI's approval, Fincare SFB will merge into AU SFB effective from 1st April 2024 and shareholders  of Fincare SFB will receive shares of AU SFB in exchange for their shares in Fincare SFB at the approved  share swap ratio. All employees of Fincare SFB will become part of the AU SFB family
About AU Small Finance Bank
AU Small Finance Bank Limited (AU SFB) is a scheduled commercial bank and has established itself as the  largest SFB in India since starting its banking journey in April 2017. Established in 1996 by Mr. Sanjay Agarwal, a first-generation entrepreneur, AU SFB boasts a 28 years-legacy with deep understanding of the  rural and semi-urban markets and customer segments.Â
The Bank operates from 1,049 banking touchpoints across 21 States & 3 Union Territories serving 46.8 Lac  customers with an employee base of 28,904 employees. As on 31st Dec’23, the Bank has a net worth of  ₹12,167 Crore, deposit base of ₹80,120 Crore, Gross Advance of ₹67,624 Crore and a Balance sheet size  of ₹1,01,176 Crore.Â
​
About Fincare Small Finance Bank
Fincare Small Finance Bank is a ‘digital-first’ small finance bank offering banking services through banking  outlets, ATM, WhatsApp, Video Banking, Mobile Banking, Internet Banking and website Chatbots.  convenience for customers.
​
Fincare Small Finance Bank commenced banking operations on 21st July 2017 under Section 22 of the Banking Regulation Act, 1949. It was included in the Second Schedule to the RBI Act, 1934 published in the Gazette of India dated April 13, 2019. As of December 31, 2023, Fincare Small Finance Bank’s Gross Loan Portfolio amounted to ₹13,352 Crore, while Deposits reached ₹9,734 Crore. The Bank hasÂ
 a customer base exceeding 59 Lakhs+, supported by over 14,800 employees. With a widespread presence, the Bank boasts 1,303 touch points strategically located across  20 states and 3 Union Territories
NEW SMALL FINANCE BANKS ON THE WAY
FINO BANK APPLIES FOR SFB LICENCE :Â
Dated 09.01.2024 : Fino payment Bank has applied to the Reserve Bank of India ( RBI ) for a licence to operate a small finance bank ( SFB ) , under  the Guidelines for ‘on tap’ Licensing of Small Finance Banks in the Private Sector dated December 05, 2019  .Â
As per the existing guidelines ,  Payments Banks can apply for conversion into SFB after five years of operations, if they are otherwise eligible as per the guidelines.
Fino Payments Bank is a fully owned subsidiary of Fino Paytech Ltd.  . It was  the first payments bank to go live with 410 branches and more than 25,000 banking points on day one. The bank was incorporated on 4th April, 2017​ ​
Dated 09.01.2024 : Fino payment Bank has applied to the Reserve Bank of India ( RBI ) for a licence to operate a small finance bank ( SFB ) , under  the Guidelines for ‘on tap’ Licensing of Small Finance Banks in the Private Sector dated December 05, 2019  .Â
As per the existing guidelines ,  Payments Banks can apply for conversion into SFB after five years of operations, if they are otherwise eligible as per the guidelines.
Fino Payments Bank is a fully owned subsidiary of Fino Paytech Ltd.  . It was  the first payments bank to go live with 410 branches and more than 25,000 banking points on day one. The bank was incorporated on 4th April, 2017​ ​
UNITY SMALL FINANCE BANKÂ Â BEGINS ITS OPERATIONSÂ
Dated 02.11.2021 : Reserve Bank of India (RBI) had issued a small finance bank (SFB) licence to  Unity Small finance Bank  in June 2021 . It is  floated by  the Centrum Group-BharatPe consortium. It has begun its operations yesterday . The new bank is expected to take over the assets and liabilities of the beleaguered PMC Bank which is put under section 35a OF RBI Act restricting its operations  .Â
Â
 The Unity SFB will have to be guided by the directions and timelines of the RBI on the amalgamation of Punjab & Maharashtra Co-Operative Bank Limited with them .  Centrum consortium was one of the bidders  that had  offered to participate in reconstruction of the bank, in response to the Expression of Interest (EOI) dated November 3, 2020 floated by the bank. RBI and PMC Bank have been  engaging with them  in order to secure best possible terms for the depositors and other stakeholders of PMC Bank while ensuring long term viability of the reconstructed entity.Â
Unity Bank will be a digital first bank with a business model of collaboration and open architecture, uniting all  its stakeholders to deliver a seamless digital experience. The Bank commences operations with Centrum’s successful MSME and Micro Finance businesses and teams, a capital infusion of approx. Rs 1,100 crores, total assets of about Rs 2400 crores, active customer base of over 2 lakhs, 145 offices  including a branch in Centrum House, Mumbai, getting off to a strong start.Â
About centrum Group  : The group was established in 1997  . Centrum has diversified fee businesses and a lending platform for institutions and  individuals. Institutional services include Investment Banking, Mid-corporates & SME credit and Broking to  FIIs, Pension Funds, Indian Mutual Funds, Domestic Institutions etc. It also provides MSME credit, Wealth  Management Servicesto HNIs and Family Offices, Affordable Housing finance in tier 2 & 3 cities, Micro Finance  loans and Retail Broking. Its Asset Management business offers funds across Private Debt and Venture Capital.
About Bharat Pe : BharatPe was co-founded by Ashneer Grover and Shashvat Nakrani in 2018 with the vision of making financial
inclusion a reality for Indian merchants. In 2018, BharatPe launched India’s first UPI interoperable QR code, the first zero MDR payment acceptance service. In 2020, post-Covid, BharatPe also launched India’s only zero  MDR card acceptance terminals – BharatSwipe. Currently serving over 70 lakh merchants across 140+ cities,  the company is a leader in UPI offline transactions, processing 11 crores+ UPI transactions per month  (annualized Transaction Processed Value of US$ 11+ Bn). The company has already facilitated disbursement  of loans totaling to over Rs. 2,200 crores to its merchants, since launch. BharatPe’s POS business processes  payments of over Rs. 1,400 crores/ month. BharatPe has raised close to US$ 600 million in equity and debt,  till date. The company’s list of marquee investors includes Tiger Global, Dragoneer Investment Group, Steadfast Capital, Coatue Management, Ribbit Capital, Insight Partners, Steadview Capital, Beenext, Amplo
and Sequoia Capital. In June 2021, the company announced the acquisition of PAYBACK India, the country’s  largest multi-brand loyalty program company with 100 million+ members. In June 2021, it was also given an  in-principle approval by Reserve Bank of India to establish a Small Finance Bank, in partnership with Centrum  Financial Services Limited (Centrum), the established and profitable NBFC arm of the Centrum Group.Â
​Source : websites of respective companies .Â
Dated 02.11.2021 : Reserve Bank of India (RBI) had issued a small finance bank (SFB) licence to  Unity Small finance Bank  in June 2021 . It is  floated by  the Centrum Group-BharatPe consortium. It has begun its operations yesterday . The new bank is expected to take over the assets and liabilities of the beleaguered PMC Bank which is put under section 35a OF RBI Act restricting its operations  .Â
Â
 The Unity SFB will have to be guided by the directions and timelines of the RBI on the amalgamation of Punjab & Maharashtra Co-Operative Bank Limited with them .  Centrum consortium was one of the bidders  that had  offered to participate in reconstruction of the bank, in response to the Expression of Interest (EOI) dated November 3, 2020 floated by the bank. RBI and PMC Bank have been  engaging with them  in order to secure best possible terms for the depositors and other stakeholders of PMC Bank while ensuring long term viability of the reconstructed entity.Â
Unity Bank will be a digital first bank with a business model of collaboration and open architecture, uniting all  its stakeholders to deliver a seamless digital experience. The Bank commences operations with Centrum’s successful MSME and Micro Finance businesses and teams, a capital infusion of approx. Rs 1,100 crores, total assets of about Rs 2400 crores, active customer base of over 2 lakhs, 145 offices  including a branch in Centrum House, Mumbai, getting off to a strong start.Â
About centrum Group  : The group was established in 1997  . Centrum has diversified fee businesses and a lending platform for institutions and  individuals. Institutional services include Investment Banking, Mid-corporates & SME credit and Broking to  FIIs, Pension Funds, Indian Mutual Funds, Domestic Institutions etc. It also provides MSME credit, Wealth  Management Servicesto HNIs and Family Offices, Affordable Housing finance in tier 2 & 3 cities, Micro Finance  loans and Retail Broking. Its Asset Management business offers funds across Private Debt and Venture Capital.
About Bharat Pe : BharatPe was co-founded by Ashneer Grover and Shashvat Nakrani in 2018 with the vision of making financial
inclusion a reality for Indian merchants. In 2018, BharatPe launched India’s first UPI interoperable QR code, the first zero MDR payment acceptance service. In 2020, post-Covid, BharatPe also launched India’s only zero  MDR card acceptance terminals – BharatSwipe. Currently serving over 70 lakh merchants across 140+ cities,  the company is a leader in UPI offline transactions, processing 11 crores+ UPI transactions per month  (annualized Transaction Processed Value of US$ 11+ Bn). The company has already facilitated disbursement  of loans totaling to over Rs. 2,200 crores to its merchants, since launch. BharatPe’s POS business processes  payments of over Rs. 1,400 crores/ month. BharatPe has raised close to US$ 600 million in equity and debt,  till date. The company’s list of marquee investors includes Tiger Global, Dragoneer Investment Group, Steadfast Capital, Coatue Management, Ribbit Capital, Insight Partners, Steadview Capital, Beenext, Amplo
and Sequoia Capital. In June 2021, the company announced the acquisition of PAYBACK India, the country’s  largest multi-brand loyalty program company with 100 million+ members. In June 2021, it was also given an  in-principle approval by Reserve Bank of India to establish a Small Finance Bank, in partnership with Centrum  Financial Services Limited (Centrum), the established and profitable NBFC arm of the Centrum Group.Â
​Source : websites of respective companies .Â
RBIÂ Â RECEIVESÂ APPLICATIONS FOR NEW SMALL FINANCE BANKSÂ :Â
Dated  01.09.2021 :    Reserve Bank of India has received applications under the Guidelines for ‘on tap’ Licensing of Small Finance Banks dated December 5, 2019 from the following applicants –
- VSoft Technologies Private Limited
- Calicut City Service Co-operative Bank Limited
- Shri Akhil Kumar Gupta
- Dvara Kshetriya Gramin Financial Services Private LimitedÂ
- Cosmea Financial Holdings Private Limited
- Tally Solutions Private Limited Â
In " on-tap " licensing  . an applicant can apply to RBI on any time .  The applications will go through the following  procedure before they get a licence by RBI :Â
​
- At the first stage, the applications will be screened by RBI to assess the eligibility of the applicants, vis-à -vis the criteria laid down in these guidelines. RBI may apply additional criteria to determine the suitability of applications, in addition to the ‘fit and proper’ criteria prescribed at paragraph 3 above. Thereafter, the applications will be referred to a Standing External Advisory Committee (SEAC) to be set up by RBI.
- The SEAC will comprise of eminent persons with experience in banking, financial sector and other relevant areas. The tenure of the SEAC will be for three years.
- The SEAC will set up its own procedures for screening the applications. The SEAC will meet periodically, as and when required. The Committee will reserve the right to call for more information as well as have discussions with any applicant/s and seek clarification on any issue as may be required by it. The Committee will submit its recommendations to RBI for consideration.
- The Internal Screening Committee (ISC), consisting of the Governor and the Deputy Governors will examine all the applications. The ISC will also deliberate on the rationale of the recommendations made by the SEAC and then submit its recommendations to the Committee of the Central Board (CCB) of RBI for the final decision to issue ‘in-principle approval’.
- The validity of the ‘in-principle approval’ issued by RBI will be 18 months from the date of granting ‘in-principle approval’ and would thereafter lapse automatically. Therefore, the -applicant will have to obtain the license within a period of 18 months of granting the ‘in-principle approval’.
- After issue of the ‘in-principle approval’ for setting up of a small finance bank, if any adverse features are noticed regarding the Promoters or the companies / entities with which the Promoters are associated and the group in which they have interest, the RBI may impose additional conditions and if warranted, may withdraw the ‘in-principle approval’.
- The names of applicants that are found suitable for grant of in-principle approval will also be placed on the RBI website.
- An applicant who has not been found suitable for issue of license will be advised of the Reserve Bank’s decision. Such applicants will not be eligible to make an application for a banking license for a period of three years from the date of that decision.
- Applicants aggrieved by the decision of the Committee of the Central Board can prefer an appeal against the decision to the Central Board of Directors, within one month from the date of receipt of communication from RBI relating to the application not being considered as at paragraph 16 (h) above.
- Who can apply for SFB Licence ?Â
1. Resident individuals/professionals (Indian citizens), singly or jointly, each having at least 10 years of experience in banking and finance at a senior level;Â
2. Companies and Societies in the private sector, that are owned and controlled by residents (as defined in FEMA Regulations, as amended from time to time), and having successful track record of running their businesses for at least a period of five years, will be eligible as promoters to set up small finance banks.
3. Existing Non-Banking Finance Companies (NBFCs), Micro Finance Institutions (MFIs), and Local Area Banks (LABs) in the private sector, that are controlled by residents , and having successful track record of running their businesses for at least a period of five years, can also opt for conversion into small finance banks
Who are not eligible to apply ?Â
1. Joint ventures by different promoter groups for the purpose of setting up small finance banks would not be permitted.Â
2. Proposals from public sector entities and large industrial house / business groups, including from NBFCs promoted by them, autonomous boards / bodies set up under enactment of a State legislature, state financial corporations, subsidiaries of development financial institutions, will not be entertained. For the purpose of these guidelines, a Group with assets of Rs.5,000 crore or more with the non-financial business of the group accounting for 40 per cent or more in terms of total assets / gross income, will be treated as a large industrial house / business groups.Â
- What  business a   SFB can do ?  Â
-  The small finance bank can  undertake basic banking activities of acceptance of deposits and lending to unserved and underserved sections including small business units, small and marginal farmers, micro and small industries and unorganised sector entities. It can also undertake other non-risk sharing simple financial services activities, not requiring any commitment of own fund, such as distribution of mutual fund units, insurance products, pension products, etc. with the prior approval of the RBI and after complying with the requirements of the sectoral regulator for such products. The small finance bank can also become a Category II Authorised Dealer in foreign exchange business for its clients’ requirements. Â
- Minimum Capital required :Â Â The minimum paid-up voting equity capital for small finance banks shall be Rs.200 crore,
 JANA SMALL FINANCE BANK ALLOWS CUSTOMERS TO CHOOSE THEIR ACCOUNT NUMBER :Â
Dated 12.05.2021 : Bengaluru  based Jana Small Finance Bank has come out with a new feature  for its new savings bank and current account customers  and they can choose  last 10  numbers  in the account numbers to be allotted to them by the bank . While opening an account  , Customers can choose any 10 numbers of their choice and will be allotted by the bank as  the last 10 digits of the account number to be opened , subject to availability of the number in their system .Â
​For further details , you may visit bank's websiteÂ
Dated 12.05.2021 : Bengaluru  based Jana Small Finance Bank has come out with a new feature  for its new savings bank and current account customers  and they can choose  last 10  numbers  in the account numbers to be allotted to them by the bank . While opening an account  , Customers can choose any 10 numbers of their choice and will be allotted by the bank as  the last 10 digits of the account number to be opened , subject to availability of the number in their system .Â
​For further details , you may visit bank's websiteÂ
WHAT ARE SMALL FINANCE BANKS IN INDIA ?
      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 sections of the economy not being served by other banks .     Â
Basically  Small Finance banks  would help  small business units, small and marginal farmers, micro and small industries and unorganised sector entities in India.   On 16th September 2015 ,  Reserve Bank of India has  given licence  or in -principle approval  to 10 entities for   opening such banks   out of the 72 applications received . According to a statement by RBI, the in-principle approval granted  is  valid for 18 months to enable the applicants to comply with the requirements under the Guidelines and fulfil other conditions as may be stipulated by them
The ten  companies areÂ
Basically  Small Finance banks  would help  small business units, small and marginal farmers, micro and small industries and unorganised sector entities in India.   On 16th September 2015 ,  Reserve Bank of India has  given licence  or in -principle approval  to 10 entities for   opening such banks   out of the 72 applications received . According to a statement by RBI, the in-principle approval granted  is  valid for 18 months to enable the applicants to comply with the requirements under the Guidelines and fulfil other conditions as may be stipulated by them
The ten  companies areÂ
- Â Au Financiers (India) Limited, JaipurÂ
- Capital Local Area Bank Limited, JalandharÂ
- Disha Microfin Private Limited, AhmedabadÂ
- Equitas Holdings P Limited, ChennaiÂ
- ESAF Microfinance and Investments Private Limited, ChennaiÂ
- Janalakshmi Financial Services Private Limited, BengaluruÂ
- RGVN (North East) Microfinance Limited, GuwahatiÂ
- Suryoday Micro Finance Private Limited, Navi MumbaiÂ
- Ujjivan Financial Services Private Limited, BengaluruÂ
- Utkarsh Micro Finance Private Limited, Varanasi.
LICENCES FOR SMALL FINANCE BANKS
 Small Finance  Banks  are licensed  and  regulated by   Reserve Bank of India . The minimum  capital requirements for such banks is Rs 100  crores  . Promoter stake must be at 40 percent in first 5 years - Promoter stake to be brought down to 30 percent within 10 yrs, 26 percent in 12 years  .Joint ventures are not permitted. Foreign share holding will be allowed in these banks as per the rules for FDI in private banks in India.  Listing mandatory within 3 years of reaching Rs. 500 crore net worth .
 Guidelines issued by  RBI  for operations of the banks  are as  follows :
1. Â 75 percent of Adjusted Net Bank Credit to be extended to priority sectorÂ
2. Â 50 percent of loan portfolio to constitute loans & advances of upto Rs 25 lakhÂ
3.  25  percentage of  branches must be in unbanked rural areasÂ
4. Â Maximum loan size & investment limit to single obligor restricted to 10 percent of capital fundsÂ
5. Â Maximum loan size & investment limit to a group restricted to 10 percent of capital fundsÂ
6. Â CRR, SLR requirement as applicable to existing commercial banks from Day 1
 The draft guidelines  issued by  Reserve  Bank of India on Payment Banks  is available on their website .
 To reach the guidelines . CLICK HERE  . Further RBI , on 06.07.2017 , has issued  compendium of Guidelines to Small Finance Banks  which can be accessed by CLICKING HEREÂ
 Guidelines issued by  RBI  for operations of the banks  are as  follows :
1. Â 75 percent of Adjusted Net Bank Credit to be extended to priority sectorÂ
2. Â 50 percent of loan portfolio to constitute loans & advances of upto Rs 25 lakhÂ
3.  25  percentage of  branches must be in unbanked rural areasÂ
4. Â Maximum loan size & investment limit to single obligor restricted to 10 percent of capital fundsÂ
5. Â Maximum loan size & investment limit to a group restricted to 10 percent of capital fundsÂ
6. Â CRR, SLR requirement as applicable to existing commercial banks from Day 1
 The draft guidelines  issued by  Reserve  Bank of India on Payment Banks  is available on their website .
 To reach the guidelines . CLICK HERE  . Further RBI , on 06.07.2017 , has issued  compendium of Guidelines to Small Finance Banks  which can be accessed by CLICKING HEREÂ
SHIVALIK SMALL FINANCE BANKÂ Â BEGINS ITSÂ OPERATIONS :Â
Dated 27.04.2021 : UP headquartered Shivalik Small Finance Bank has begun its banking operations yesterday . It was given license in January 2021 by Reserve Bank of India  ( RBI )  .Â
 Its parent body  is a multistate co-operative society operating in Uttar Pradesh , Delhi  & Madhyapradesh  which is doing its business since 1998 . Its headquarters and Registered office is in Sahranpur , UP . ​The bank has 31 branches and 57 ATMs . Â
Other Details :
IFSC CODE :Â Â Â SMCB000 1001 till 1031
Telefax : 0120-4060000Â Â Â email :Â Â info@shivalikbank.com
 website : www.shivalikbank.com  Facebook page : www.facebook.com/shivalikbank Â
As of 31st , March 2020 , the bank had a deposit of Rs 1,139 crores and advance of Rs 718 crores . Â
​Shivalik Small Finance Bank is the 11th bank small finance bank operating in India .Â
Dated 27.04.2021 : UP headquartered Shivalik Small Finance Bank has begun its banking operations yesterday . It was given license in January 2021 by Reserve Bank of India  ( RBI )  .Â
 Its parent body  is a multistate co-operative society operating in Uttar Pradesh , Delhi  & Madhyapradesh  which is doing its business since 1998 . Its headquarters and Registered office is in Sahranpur , UP . ​The bank has 31 branches and 57 ATMs . Â
Other Details :
IFSC CODE :Â Â Â SMCB000 1001 till 1031
Telefax : 0120-4060000Â Â Â email :Â Â info@shivalikbank.com
 website : www.shivalikbank.com  Facebook page : www.facebook.com/shivalikbank Â
As of 31st , March 2020 , the bank had a deposit of Rs 1,139 crores and advance of Rs 718 crores . Â
​Shivalik Small Finance Bank is the 11th bank small finance bank operating in India .Â
WHAT WE CAN EXPECT FROM SMALL FINANCE Â BANKS ?
 Licences for  Small Finance Banks  are now issued to existing micro finance institutions  which are already in the business of  lending to  small and tiny entities .  But once they establish small finance  banks , they can increase their  loan size  to their customers . And they can also  receive deposits , distribute mutual funds  , insurance products  etc .  Hence  we  can expect competition to increase in the  rural banking  ans existing banks have to gear up to face it . Â
As per  RBI licence , new  small finance  banks were to be set up within 18 months .  Now all the ten licencees have opened their banksÂ
As per  RBI licence , new  small finance  banks were to be set up within 18 months .  Now all the ten licencees have opened their banksÂ
LIST OF ACTIVE SMALL FINANCE BANKS IN INDIA
   Presently Following Small  Finance Banks  have started operation .Â
  ( CLICK ON THE NAME OF THE BANK TO GO TO THEIR WEBSITE  )
1.  AU SMALL FINANCE BANK   :   Licence given by  RBI  to Au Financiers (India) Limited, Jaipur  .
2. CAPITAL SMALL FINANCE BANK  : ​  Licence given by  RBI  to  Capital Local Area Bank Limited, JalandharÂ
​3. SURYODAY SMALL FINANCE BANK  : ​ Licence given by  RBI  to Suryoday Micro Finance Private Limited, Navi Mumbai Â
4. UJJIVAN SMALL FINANCE BANK  :  ​Licence given by  RBI  to  Ujjivan Financial Services Private Limited, Bengaluru  .Â
5. UTKARSH SMALL FINANCE BANK   :   ​​Licence given by  RBI  to  Utkarsh Micro Finance Private Limited, Varanasi. Â
6 EQUITAS SMALL FINANCE BANK  :   ​​​Licence given by  RBI  to  Equitas Holdings P Limited, ChennaiÂ
7 ESAF SMALL FINANCE BANK  :    ​Licence given by  RBI  to  ESAF Microfinance and Investments Private Limited, Chennai  .Â
​8  JANA SMALL FINANCE BANK   :   ​Licence given by  RBI  to  Janalakshmi Financial Services Private Limited, Bengaluru Â
9 . FINCARE SMALL FINANCE BANK  :  ​Licence given by  RBI  to  Disha Microfin Private Limited, Ahmedabad ​ Â
10 : NORTH EAST SMALL FINANCE BANK : ​ ​Licence given by RBI  to RGVN (North East) Microfinance Limited, GuwahatiÂ
  ( CLICK ON THE NAME OF THE BANK TO GO TO THEIR WEBSITE  )
1.  AU SMALL FINANCE BANK   :   Licence given by  RBI  to Au Financiers (India) Limited, Jaipur  .
2. CAPITAL SMALL FINANCE BANK  : ​  Licence given by  RBI  to  Capital Local Area Bank Limited, JalandharÂ
​3. SURYODAY SMALL FINANCE BANK  : ​ Licence given by  RBI  to Suryoday Micro Finance Private Limited, Navi Mumbai Â
4. UJJIVAN SMALL FINANCE BANK  :  ​Licence given by  RBI  to  Ujjivan Financial Services Private Limited, Bengaluru  .Â
5. UTKARSH SMALL FINANCE BANK   :   ​​Licence given by  RBI  to  Utkarsh Micro Finance Private Limited, Varanasi. Â
6 EQUITAS SMALL FINANCE BANK  :   ​​​Licence given by  RBI  to  Equitas Holdings P Limited, ChennaiÂ
7 ESAF SMALL FINANCE BANK  :    ​Licence given by  RBI  to  ESAF Microfinance and Investments Private Limited, Chennai  .Â
​8  JANA SMALL FINANCE BANK   :   ​Licence given by  RBI  to  Janalakshmi Financial Services Private Limited, Bengaluru Â
9 . FINCARE SMALL FINANCE BANK  :  ​Licence given by  RBI  to  Disha Microfin Private Limited, Ahmedabad ​ Â
10 : NORTH EAST SMALL FINANCE BANK : ​ ​Licence given by RBI  to RGVN (North East) Microfinance Limited, GuwahatiÂ
TAX ON RETIREMENT Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â CLICK HERE TO READÂ
DEPOSIT RATES OF SMALL FINANCE BANKS
 Generally small finance banks are paying higher FD interest rates compared to commercial banks , public sector or private banks  .The highest yield on Bank Deposits  for one year matirity come  generally from small finance banks .   Utkarsh   Small finance Bank pays 7.75 % for 1 year public deposit and 8.25 % for senior citizens   . Similarly for 5 year deposits , Small finance banks pay  between 6.50 % to 9.00 % for public and 7.00 % to 9.25 % for senior citizens , which are generally higher than other banks .  Suryuodaya SF Bank pays highest of 9 % for the public and 9.25 % for the senior citizens .Â
For complete details of interest you can receive  Small Finance Banks , click hereÂ
For complete details of interest you can receive  Small Finance Banks , click hereÂ
TO KNOW ABOUT PAYMENT BANKS Â , CLICK HEREÂ
PRECAUTIONS WHILE Â INVESTING
CLICK HERE TO READÂ
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TAX ON RETIREMENT
MORE THAN 2000 VIEWSÂ Â Â IN ITS FIRST WEEK OF PUBLICATION Â
 CLICK HERE TO READÂ
----------------------------------------------------------------------------------------------------------------
 HOW TO  LINK YOUR AADHAR TO PAN  ?  CLICK HEREÂ
New Updated ArticleÂ
      Â
 TAX PLANNING FOR FY 2023-24 ( AY 2024-25 )Â
Comprehensive  Article on Income tax changes in Rules, Rates , Slabs , Rebates  and EstimationÂ
CLICK HERE TO READÂ
​
CLICK HERE TO READÂ
----------------------------------------------------------------------
TAX ON RETIREMENT
MORE THAN 2000 VIEWSÂ Â Â IN ITS FIRST WEEK OF PUBLICATION Â
 CLICK HERE TO READÂ
----------------------------------------------------------------------------------------------------------------
 HOW TO  LINK YOUR AADHAR TO PAN  ?  CLICK HEREÂ
New Updated ArticleÂ
      Â
 TAX PLANNING FOR FY 2023-24 ( AY 2024-25 )Â
Comprehensive  Article on Income tax changes in Rules, Rates , Slabs , Rebates  and EstimationÂ
CLICK HERE TO READÂ
​