Two small finance banks have started operations. Microfinance institutions Utkarsh Micro Finance and Suryoday Microfinance commenced their banking operations recently. The two banks are offering higher interest rates for deposits than rates offered by commercial banks. According to Govind Singh, MD, Utkarsh Micro Finance, the newly launched bank will focus in addressing the challenges in terms of repayment collection and streamlining the process of branch operation. The bank is mostly present in Uttarakhand and Uttar Pradesh. It has around 12 lakh borrower customers. Suryoday Microfinance largely operates in Maharashtra and has around 6.5 lakh customers. Capital Small Finance Bank and Equitas Small Finance Bank were the first to launch banking operations after the RBI has issued banking licenses to 10 financial institutions to open small finance banks in the country.
