If you ask me, are small finance bank safe, as a banking employee, I will say yes. It is because under the direction of the Indian government, the Reserve Bank of India (RBI) established the Small Finance Bank (SFB) division. SFBs are financial institutions that cater to the financial needs of the underprivileged segments of society, according to the RBI.
How Safe are Small Finance Banks?
The RBI oversees and regulates SFBs, just like it does all Indian banks. Here are the reasons why SFBs are safe:
They adhere to the same guidelines as commercial banks on priority sector lending, such as Reserve Ratio Requirements or CRR, Statutory Liquidity Ratio Requirements or SLR, and capital adequacy.
They also offer loans and take deposits.
Deposits in SFBs are insured by DICGC, much like those in other banks.
In comparison to big banks, many SFBs provide better interest rates for savings and investments.
SFB is a Scheduled Commercial Bank that satisfies the requirements outlined in clause 42 of the RBI Act of 1934 and is included in the second schedule.
In addition to SFBs, other types of Scheduled Commercial Banks include Public Sector Banks, Scheduled Payments Banks, Private Sector Banks, Regional Rural Banks, and Foreign Banks.
I will suggest that, before you make large investments, you evaluate each SFB’s credit ratings and capital adequacy measures.
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Are Small Finance Bank Safe?
Nakshit6
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3 months
2025-09-02T14:44:01+00:00 2025-09-02T14:44:02+00:00Comment
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