Savings Account Interest Rates of Small Finance Banks2 min read
In this article you will find the latest Savings Account Interest Rates of Small Finance Banks in India. These interest rates are as on last updated by the banks respective websites.
Latest Savings Account Interest Rates of Small Finance Banks (June 2023)
Here are the latest Savings Account Interest Rates of Small Finance Banks in India. These interest rates are as on last updated by the bank’s respective websites.
Savings Account Interest Rates of Small Finance Banks (June 2023)
What is a Small Finance Bank?
- Small Finance Banks (SFBs) is a specific segment of banking created by RBI under the guidance of the Government of India.
- Objective of setting up Small Finance Banks is to further financial inclusion by primarily basic banking activities to unserved and under-served sectors. It includes
- In short, Small Finance Banks are set up for these unserved and underserved segments with a basic objective of:
- Provision of savings vehicles primarily to unserved and underserved sections of the population in India
- Supply of credit to Small Business Units, Small and Marginal Farmers, Micro and Small Industries, and Unorganized entities, through high technology-low cost operations
How Small Finance Banks Were Created?
- Small Finance Banks were created pursuant to the announcement in Union Budget 2014-2015, presented on July 10, 2014.
- RBI issued the Guidelines on 27 November 2014 for licensing and regulation of SFBs. On 16 September 2015, RBI decided to grant “in-principle” approval to 10 applicants to set up small finance banks under the Guidelines issued on November 27, 2014.
- SFBs are subject to all prudential norms and regulations of RBI as applicable to existing commercial banks like maintenance of Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR).
- The target group of SFBs is similar to that of Local Area Banks. They are required to extend 75% of its Adjusted Net Bank Credit (ANBC) to the sectors eligible for classification as Priority Sector Lending (PSL) by the Reserve Bank. At least 50% of its loan portfolio should constitute loans and advances of up to Rs. 25 lakh.
- Here, Categories given by RBI under PSL for SFBs are as follows :
- Micro, Small and Medium Enterprises (MSMEs)
- Export Credit
- Social Infrastructure
- Renewable Energy
- Many small finance banks offer competitive interest rates on Savings accounts.
- Utkarsh Small Finance Bank, offer the highest savings account interest rates (4.25%) for the balance up to Rs.1 Lac
- Utkarsh Small Finance Bank and Jana Small Finance Banks also offer higher and competitive interest rates (up to 7.25%) on their savings account for the balance above 25 lac and above 10 lac respectively.
- AU Small Finance Bank and Ujjivan Small Finance Banks are the two listed Small Finance bank players in India (listed on Stock Exchange NSE and BSE).
9 thoughts on “Savings Account Interest Rates of Small Finance Banks”
But are these banks credit worthy. In this turbulent times and banking industry also not doing well, is it safe to invest the hard earned in such small banks . I think it would not be wise decision to invest
Lending to small business units, small and marginal farmers, micro and small businesses and informal companies, through high-tech-low-cost activities, has many benefits for this blog.
The objectives of setting up small finance banks are primarily to enhance funding for the underprivileged and lesser service sectors through basic banking activities. Yes precisely.
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RBI should mandate these bank to IPO payment,this is one of worst fact about this….