Number of Small Finance Bank in India__________.

The correct answer is option 1.

• They are as follow:

1. Au Small Finance Bank Ltd.
2. Capital Small Finance Bank Ltd
3. Fincare Small Finance Bank Ltd.
4. Equitas Small Finance Bank Ltd
5. ESAF Small Finance Bank Ltd.
6. Suryoday Small Finance Bank Ltd.
7. Ujjivan Small Finance Bank Ltd.
8. Utkarsh Small Finance Bank Ltd.
9. North East Small finance Bank Ltd
10. Jana Small Finance Bank Ltd
11. Shivalik Small Finance Bank Ltd
12. Unity Small Finance Bank Ltd

Additional Information

• The objectives of setting up of small finance banks will be to further financial inclusion by (a) provision of savings vehicles, and (ii) supply of credit to small business units; small and marginal farmers; micro and small industries; and other unorganised sector entities, through high technology-low cost operations.
• The small finance bank shall be registered as a public limited company under the Companies Act, 2013.
• It will be licensed under Section 22 of the Banking Regulation Act, 1949 
•  Resident individuals/professionals with 10 years of experience in banking and finance; and companies and societies owned and controlled by residents will be eligible to set up small finance banks.
• The minimum paid-up equity capital for small finance banks shall be Rs. 200 crore.
• The promoter's minimum initial contribution to the paid-up equity capital of such small finance bank shall at least be 40 per cent and gradually brought down to 26 per cent within 12 years from the date of commencement of business of the bank.
• The foreign shareholding in the small finance bank would be as per the Foreign Direct Investment (FDI) policy for private sector banks as amended from time to time.
• As per the current FDI policy, the aggregate foreign investment in a private sector bank from all sources will be allowed upto a maximum of 74 per cent of the paid-up capital of the bank
• RBI also granted banking license to Unity Small Finance Bank Ltd and it commenced operations as a small finance bank with effect from November 1, 2021