Small Finance Banks: New Hope for the Unbanked?

Guidelines of RBI for licensing of SFBs states that the objective of setting up of small finance banks will be to further financial inclusion.

IFI Summit 2017 has arranged a plenary session discussing the so-far impact, implications and future prospects on #FinancialInclusion (F / T) by Small Finance Banks in the Indian economy.

SFBs

The objective mentioned above fitted well with the institutions that were granted license, as most of them were MFIs. It also created opportunities for them to be able to do things that were constraints as ‘NBFC-MFIs’ such as mobilizing savings. SFB was a legal form much-awaited and was cheered by the sector with great excitement and hope.

As most SFBs celebrate their first anniversary, it is an opportune time to assess whether these institutions are on course to fulfilling the above objective. It is important to understand if the change in legal form has resulted in any change in the mission, the delivery methodology or change in priorities.

Are SFBs still as committed to their core clientele that they started with or are the business compulsions veering them to other market segments?

This session explores the development in SFBs since their origin. The session will deliberate the direction that SFBs are heading; the challenges they are facing and the opportunities that they are leveraging.

 

Published by

Inclusive Finance India Summit

Inclusive Finance India is a global policy platform on financial Inclusion setup with the objective of enabling cross-pollination of best practices and breakthroughs,specifically to influence India’s Financial Inclusion strategy and campaign. Recognizing the need and to support this cause, ACCESS has been organizing “The Inclusive Finance Summit” since 2004. This year the Summit is being held on January 18 - 19, 2021 in New Delhi.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s