Direct Tax
Consulting
ESG Advisory
Indirect Tax
Growth Advisory
Internal Audit
BFSI Audit
Industry Audit
Valuation
RBI Services
SEBI Services
IRDA Registration
AML Advisory
IBC Services
NBFC Compliance
IRDA Compliance
Finance & Accounts
Payroll Compliance Services
HR Outsourcing
LPO
Fractional CFO
General Legal
Corporate Law
Debt Recovery
Select Your Location
In the Union Budget 2014-15, the Government of India announced to establish the Small Finance Banks (SFBs) for the purpose to expand financial services, provide basic banking activities to the underprivileged, and have last-mile connectivity (mainly in rural areas). The role of Small Finance banks will allow micro and small enterprises, small and marginal farmers, and micro and small industries to avail lending services. Financial inclusion helps in reducing poverty and empowers women/marginalised/secluded to make sound financial decisions, further reducing inequality.
Table of Contents
Small Finance Banks are specialised finance institutes created with an intention to implement the concept of financial inclusion in India to serve low-income groups. Small Finance Bank is registered under the Companies Act, 2013[1] as a public limited company in the private sector. Like conventional banks, the functions and role of small finance banks also involves accepting deposits and lending activities.It also aims to strengthen the Indian economy by connecting small businesses with formal financial institutions.
The following important features of a Small Finance Banks are:
The Reserve Bank of India has issued broad guidelines which cover the licensing and role of Small Finance Banks.
Financial inclusion means a process of ensuring access to banking services and timely and adequate lending services to vulnerable sections of society like low-income households and people in unbanked areas. The role of small finance banks in financial inclusion are:
There has to be a structured and multidimensional approach through small finance banks, regional rural banks, NBFCs, digital platforms, infrastructure, and technological innovations to achieve the goal of Financial Inclusion. The role of small financial banks have been instrumental in bringing the underprivileged and unorganised sectors into the mainstream of formal banking activities. By establishing almost all branches in rural and semi-urban areas of the country to serve the lowest-earning strata the society will amplify the pace of financial inclusion and increase economic benefits to unserved areas.
Read our Article: Guiding Principle for Licensing of Small Finance Banks
The Securities and Exchange Board of India (SEBI) issued a circular to amend the requirements f...
With the interest of the investors in the security markets, an authorized government on 20th Ma...
Auditing your BPO audit checklist and BPO supplier does not entail constant micromanagement. To...
Whenever the company is considering expanding its business, an investment or funding is necessa...
Historically benefits of opening an NBFC bank have boosted the financial ecosystem across India...
Are you human?: 7 + 7 =
Easy Payment Options Available No Spam. No Sharing. 100% Confidentiality
The Financial Action Task Force, i.e. FATF (the Force), is the global money laundering and terrorist financing watc...
31 May, 2023
In the competitive era, Private Placement of Shares is in practice by many companies to raise funds. It is importan...
31 Mar, 2023
Chat on Whatsapp
Hey I'm Suman. Let's Talk!