What Is The Full Form Of SFB In Banking?
SFB full form in banking is Small Finance Bank. These unique banks popped up in India around 2015, thanks to the Reserve Bank of India (RBI) shaking things up a bit. They wanted to boost financial inclusion and bring banking to folks who hadn’t had access before. Essentially, Small Finance Banks are the local shops of banking, focusing mainly on serving small businesses, micro-enterprises, and those individuals who don’t necessarily roll in the dough. They’re all about providing the basics like savings accounts, loans, remittances, and payment services to people who usually don’t get much attention from big, mainstream banks.
What Else Should You Know About SFB?
The central mission of these SFBs is to spread financial love by reaching out to the far-flung corners of rural areas. They play a big part in extending financial services to those who often get overlooked, people from economically weaker sections of society. To get the ‘Small Finance Bank’ tag, an organization needs to get a banking license from the RBI. The RBI doesn’t hand these out like candy at a parade, though. They have specific requirements, like minimum capital, limits on how much a promoter can hold, and a real commitment to serving the intended customer base.