Difference etween commercial and small finance banks
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Small Finance Bank
Small finance banks were recommended by the NachiketMor Committee on Financial Inclusion
Area of operations will be smaller
Can's extend large loans
50% loans to Micro, Small and Medium Enterprises (MSME) Sector
For Initial 3 years, 25% branches must be in rural areas to tap those areas
Commercial Bank
Commercial Bank has no restrictions on providing any kind of products, functions and services to the customers
Commercial banks in India can extend lending services such as home loans, personal loans, etc. without any restriction
No cap on accepting deposits from its customers
Can issue Debit as well as Credit Cards
Commercial banks are allowed to invest the money they collect in form of deposits in open market
Small Finance Bank
Small finance banks were recommended by the NachiketMor Committee on Financial Inclusion
Area of operations will be smaller
Can's extend large loans
50% loans to Micro, Small and Medium Enterprises (MSME) Sector
For Initial 3 years, 25% branches must be in rural areas to tap those areas
Commercial Bank
Commercial Bank has no restrictions on providing any kind of products, functions and services to the customers
Commercial banks in India can extend lending services such as home loans, personal loans, etc. without any restriction
No cap on accepting deposits from its customers
Can issue Debit as well as Credit Cards
Commercial banks are allowed to invest the money they collect in form of deposits in open market
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