Small finance banking is a unique segment of banking created by the Reserve Bank of India under the guidance of the Government of India to provide financial services to the section that is neglected by the other public and private banks.
This section includes small and medium business units, small and marginal farmers, micro and small industries and unorganized entities. They provide all basic banking activities like acceptance of deposits and lending.
The main purpose of SFB is to expand access to financial services in rural and semi-urban areas. Ujjivan Small Finance Bank is one of the Small Finance Bank.
Ujjivan small finance Bank Limited is a mass-market that caters to financially unserved and underserved segments and is dedicated to constructing monetary inclusion in the country. It is based in Bangalore and started operations on 1 February 2017. Ujjivan financial services hold an 80% stake in the bank.
Its undertaking is to offer a complete variety of monetary offerings to the economically active poor who are not served by the financial institutions. Ujjivan Small Finance Bank is certified under Section 22(1) of the Banking Regulation Act, 1949. It obtained its Scheduled Bank status from the Reserve Bank of India in August 2017.
They offer a wide variety of products and services consisting of saving account, fixed deposits (FD), recurring deposits (RD), current account, home loans, small business loans, and micro loans. The bank also provides net banking, mobile banking, and phone banking facilities to its clients.
Ujjivan Small Finance Bank ATM is biometric enabled. This permits the clients to withdraw money through biometric authentication. Clients can open their account on a hand held tool in 5-7 mins through Aadhaar enabled KYC. The bank offers Senior Citizen Product and Tax Saver Fixed Deposit.
On September 16, 2021 Reserve Bank of India (RBI) appointed a unique committee of directors which includes three independent directors as members, to oversee the day- to day operations.
On November 29, 2021, Reserve Bank of India (RBI) appointed P N Raghunath, General Manager of Reserve Bank of India in Regional Office, Bengaluru as an Additional Director of Ujjivan Small Finance Bank for a duration of two years.
This is from November 29, 2021, to November 28, 2023, on until in addition. This was declared by Ujjivan Small Finance Bank in a regulatory filing.