RBI approved 10 entities to set up of Small Finance Banks

Recently Reserve Bank of India approved 10 entities to provide basic banking services. Lets know more about it.

Must read ==>> Payment Banks vs Small Finance Banks

• On Wednesday, RBI as approved 10 entities to provide basic banking services to small farmers as well as micro industries.
• The 10 entities are:

                  1)  Au Financiers (Jaipur)

                  2) Capital Local Area Bank (Jalandhar)

                  3) Ujjivan Financial Services and  

                  4) Disha Microfin (Ahmedabad)

                  5) ESAF Microfinance (Chennai)

                  6) Janalakshmi Financial (Bengaluru) 

                  7) RGVN (North East) Microfinance(Guwahati)

                  8) Suryoday Micro Finance (Mumbai)

                  9) Utkarsh Micro Finance (Varanasi)

                 10) Equitas Holdings 

• The approval will be valid for 18 months. 
• The central bank had received 72 applications for setting up small finance bank licences. 
• These small finance banks can provide basic banking services like accepting deposits and lending to the small farmers, micro business enterprises, micro & small industries and unorganized sector entities etc. 
• Last Month two new entities IDFC and Bandhan have been given complete banking licence and also granted approval to 11 entities for launching Payment Banks, by RBI.