Role of Small Finance Banks in Financial Inclusion

Authors

DOI:

https://doi.org/10.53573/rhimrj.2024.v11n3.002

Keywords:

Financial inclusion, Small Finance Banks, Affordable financial services, Licensing criteria, Capital requirements

Abstract

This paper introduces the concept of financial inclusion through Small Finance Banks (SFBs), emphasizing their role in providing affordable financial services to underserved populations. SFBs target low-income groups, MSMEs, and rural communities with products like microloans and savings accounts. The regulatory framework supporting SFBs includes licensing criteria, capital requirements, and governance standards to ensure their stability. However, SFBs face challenges such as regulatory compliance and managing operational costs while serving high-risk segments. Overcoming these challenges is crucial for SFBs to effectively expand their outreach and promote sustainable financial inclusion.

Author Biographies

Mr. G. Muthukrishnan, Student II MBA, Department of Management of Sciences, Hindusthan College of Engineering and Technology, Coimbatore, Tamil Nadu, India

Muthukrishnan G received his Bachelor of Commerce from Manonmaniam Sundaranar University, Tirunelveli, Tamil Nadu, India, pursuing Master of Business Administration in Finance and HR from Anna University, Chennai, Tamil Nadu, India. He completed the courses on “Foundation of Digital Marketing and e-commerce” and “Investment Risk Management” in Coursera Certification. He presented the paper on the topic “G20 Impact on Indian Industries” in 2nd International Conference conducted ny Angappa College of Arts and science, Coimbatore. He completed the Google Analytics – Beginner course certification. He completed the Internship under the PRO department in Dhrangadhra Chemical Works Limited, Sahupuram, Tuticorin, Tamilnadu.

Dr. V. Kanimozhi, Assistant Professor, Department of Management of Sciences, Hindusthan College of Engineering and Technology, Coimbatore, Tamil Nadu, India

Dr. Kanimozhi. V is a Gold Medalist and Rank Holder in Master of Business Administration from Anna University. She has cleared National Eligibility Test for Lectureship (NET) conducted by UGC- India and State Eligibility Test for lectureship (SLET) conducted by Government of Tamilnadu, India. She has more than 14 years of work experience in which 2 years was in industry and 10+ years in teaching MBA students at a Business School and engineering college. She has published papers in various national and international journals and presented various papers in national and international conferences. Currently she is working as an Assistant professor in the Department of Management Sciences at Hindusthan College of Engineering and Technology, Coimbatore and completed Doctorate in Management (Marketing) from Bharathiar University, Coimbatore.

References

Chaturvedi, D. P. (2022). The Role of Small Finance Banks in Promoting Financial Inclusion in India. Research Review International Journal of Multidisciplinary, 08-15.

Jagwani, D. J. (2019). The Role of Small Finance Bank In Indian Economy With the Special Reference to AU Bank. Inspira, 254-258.

N. Subrahmanyam, D. U. (2022). The Role of Small Finance Bank for Achieving Financial Inclusion in India Impact Growth of Our Economy. International Journal of Management and Information Technology, 38-41.

Ravikumar, T. (2019). Small Finance Banks and Financial Inclusion in India. RESEARCH REVIEW International Journal of Multidisciplinar, 1586-1588.

Swain, S. K. (2023). Role of SFBs in Financial Inclusion: A Critical Review. International Journal of Research Publication and Reviews, 1404-1407.

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Published

2024-03-31

How to Cite

Muthukrishnan, G., & Kanimozhi, V. (2024). Role of Small Finance Banks in Financial Inclusion. RESEARCH HUB International Multidisciplinary Research Journal, 11(3), 10–15. https://doi.org/10.53573/rhimrj.2024.v11n3.002

Issue

Vol. 11 No. 3 (2024): RHIMRJ [MAR-2024]

Section

Articles