Suryoday, Utkarsh small finance banks commence operations

Two small finance banks -- Suryoday and Utkarsh -- commenced operations today, the Reserve Bank said.

With this, the number of small finance banks (SFBs) operating in India has risen to four.

In September 2015, the RBI had issued in-principle approval to 10 SFB applicants.

Suryoday Micro Finance Private Limited, Navi Mumbai and Utkarsh Micro Finance Private Limited, Varanasi were among the 10 applicants.

Equitas Small Finance Bank (ESFBL) and Capital Small Finance Bank had started operations last year.

Small finance banks will offer basic banking services, accepting deposits and lending to unserved and under-served sections including small business units, small and marginal farmers, micro and small industries, and entities in the unorganised sector, RBI said when it released guidelines for such banks in November.