How Many Small Finance Banks Are There in India in 2026?
There are 11 small finance banks (SFBs) in India in 2026, as listed by the Reserve Bank of India among scheduled commercial banks. They are AU, Capital, Equitas, ESAF, Suryoday, Ujjivan, Utkarsh, slice (formerly North East SFB), Jana, Shivalik and Unity. AU Small Finance Bank is the largest and the first SFB to get RBI's in-principle approval (7 August 2025) to become a universal bank, but until it receives the final licence it is still counted as an SFB.
Key takeaway for bank exams: 11 SFBs. Capital SFB (Jalandhar) was the first to start operations (2016). Shivalik SFB was the first urban co-operative bank to become an SFB (2021). Unity SFB took over PMC Bank. North East SFB was renamed slice Small Finance Bank (RBI notification of 14 May 2025). Fincare SFB merged into AU SFB on 1 April 2024. Minimum capital for a new SFB: ₹200 crore. Priority sector target: 75% of ANBC.
The list was checked against RBI's "List of Scheduled Commercial Banks" page and its Bank Links page on 17 October 2026; rules come from RBI's 2014 and 2019 SFB licensing guidelines and the 26 April 2024 transition circular. Read it with our payments banks list 2026, because exams love the SFB vs payments bank comparison.
Small Finance Banks List 2026 (with Headquarters)
| No. | Small finance bank | Headquarters (registered office city) | Began as SFB |
|---|---|---|---|
| 1 | AU Small Finance Bank | Jaipur, Rajasthan | 2017 |
| 2 | Capital Small Finance Bank | Jalandhar, Punjab | 2016 (first SFB to start) |
| 3 | Equitas Small Finance Bank | Chennai, Tamil Nadu | 2016 |
| 4 | ESAF Small Finance Bank | Thrissur, Kerala | 2017 |
| 5 | Suryoday Small Finance Bank | Navi Mumbai, Maharashtra | 2017 |
| 6 | Ujjivan Small Finance Bank | Bengaluru, Karnataka | 2017 |
| 7 | Utkarsh Small Finance Bank | Varanasi, Uttar Pradesh | 2017 |
| 8 | slice Small Finance Bank (formerly North East SFB) | Guwahati, Assam | 2017 |
| 9 | Jana Small Finance Bank | Bengaluru, Karnataka | 2018 |
| 10 | Shivalik Small Finance Bank | New Delhi (registered office); head office Noida, UP | 2021 |
| 11 | Unity Small Finance Bank | New Delhi (registered office); corporate office Mumbai | 2021 |
Memory hook: "A-C-E-E-S-U-U-S-J-S-U" in RBI's order is hard to remember, so learn them by city instead: two in Bengaluru (Ujjivan, Jana), two in Delhi (Shivalik, Unity), and one each in Jaipur, Jalandhar, Chennai, Thrissur, Navi Mumbai, Varanasi and Guwahati.
What Changed in the SFB List in 2024-2026?
| Date | Change | Effect on the count |
|---|---|---|
| 1 Apr 2024 | Fincare SFB amalgamated with AU SFB (RBI-sanctioned scheme) | 12 to 11 |
| 27 Oct 2024 | fintech slice merged into North East SFB | No change |
| 14 May 2025 | RBI notified the new name "slice Small Finance Bank Limited" in the Second Schedule | No change (rename) |
| 7 Aug 2025 | RBI gave AU SFB in-principle approval to become a universal bank, with 18 months to complete the move | No change yet |
| Oct 2025 | RBI returned Jana SFB's universal bank application | No change |
| 13 Apr 2026 | RBI returned Ujjivan SFB's universal bank application, asking it to diversify its loan book | No change |
| 28 Jul 2026 | ManiBhavnam Home Finance merged into Shivalik SFB | No change |
So the 2026 answer is still 11. Once AU SFB gets its final universal bank licence, the count will fall to 10; re-check RBI's list before your exam.
RBI Rules for Small Finance Banks (Exam Table)
| Rule | Small finance bank |
|---|---|
| Idea came from | Raghuram Rajan Committee ("A Hundred Small Steps", 2009); announced in Union Budget 2014-15 |
| First guidelines | 27 November 2014 (in-principle approval to 10 applicants in September 2015) |
| On-tap licensing | Guidelines of 5 December 2019 |
| Minimum paid-up capital / net worth | ₹200 crore (on-tap); ₹100 crore under the 2014 rules |
| Urban co-operative bank converting | ₹100 crore at start, raised to ₹200 crore within 5 years |
| Priority sector lending | 75% of Adjusted Net Bank Credit (ANBC) |
| Small loans | At least 50% of the loan portfolio in loans up to ₹25 lakh |
| Capital adequacy (CRAR) | 15% minimum (Tier I at least 7.5%) |
| CRR and SLR | Same as other commercial banks |
| Can it lend? | Yes, a full bank: loans, deposits, cards |
| Scheduled status | Given on commencement of operations (on-tap rules) |
Small finance bank to universal bank: eligibility (RBI circular, 26 April 2024)
- Scheduled status with a satisfactory record of at least 5 years.
- Shares listed on a recognised stock exchange.
- Minimum net worth of ₹1,000 crore.
- Meets the CRAR required for SFBs.
- Net profit in the last two financial years.
- Gross NPA ≤ 3% and net NPA ≤ 1% in the last two financial years.
AU SFB met these and became the first SFB with an in-principle nod. Jana's and Ujjivan's applications were returned, so both remain SFBs.
Small Finance Bank vs Payments Bank vs Commercial Bank
| Point | Small finance bank | Payments bank | Universal commercial bank |
|---|---|---|---|
| Can give loans | Yes | No | Yes |
| Deposit limit | No limit | ₹2 lakh per customer (end of day) | No limit |
| Minimum capital (new licence) | ₹200 crore | ₹100 crore | ₹500 crore (on-tap 2016) |
| Priority sector target | 75% of ANBC | Not applicable | 40% of ANBC |
| CRAR | 15% | 15% | 9% (+ buffers) |
| Credit cards | Allowed | Not allowed | Allowed |
| Number in 2026 | 11 | 5 | 12 public + 21 private |
Common Mistakes in Small Finance Bank Questions
- Writing 12 SFBs (Fincare merged into AU in April 2024) or 10 (AU is still an SFB until its final licence).
- Still writing North East Small Finance Bank. The RBI list now says slice Small Finance Bank.
- Saying AU has become a universal bank. It holds an in-principle approval; the final licence is a separate step.
- Mixing up Shivalik (first UCB to become an SFB) with Unity (formed to take over PMC Bank).
- Using the old ₹100 crore capital figure for new SFBs. Under on-tap rules it is ₹200 crore.
Small Finance Banks Questions with Answers (Practice Set)
- How many small finance banks are there in India in 2026? Answer: 11.
- Which was the first small finance bank to start operations? Answer: Capital Small Finance Bank, Jalandhar (2016).
- Which SFB was the first to get RBI's in-principle approval to become a universal bank? Answer: AU Small Finance Bank (7 August 2025).
- North East Small Finance Bank has been renamed as? Answer: slice Small Finance Bank.
- What share of ANBC must an SFB lend to the priority sector? Answer: 75%.
- Minimum paid-up capital for a new SFB under on-tap licensing? Answer: ₹200 crore.
- Which SFB is headquartered in Varanasi? Answer: Utkarsh Small Finance Bank.
- Which committee's report led to the idea of small banks? Answer: Raghuram Rajan Committee (2009).
- Fincare SFB was merged into which bank? Answer: AU Small Finance Bank (1 April 2024).
- Minimum net worth needed for an SFB to apply for universal bank status? Answer: ₹1,000 crore.
Try more in the IBPS & SBI PO Banking Awareness Mock Test 01 and IBPS & SBI Clerk Banking Awareness Mock Test 02.
Small Finance Banks FAQs
How many small finance banks are there in India?
11, as listed by RBI on 17 October 2026.
Which is the largest small finance bank in India?
AU Small Finance Bank, Jaipur. It is also the first SFB to get RBI's in-principle approval to become a universal bank.
What is the new name of North East Small Finance Bank?
slice Small Finance Bank Limited, after the fintech slice merged into it in October 2024. RBI notified the new name on 14 May 2025.
Can a small finance bank give loans?
Yes. Unlike a payments bank, an SFB is a full bank that accepts deposits and lends, mainly to small borrowers.
What is the priority sector lending target for small finance banks?
75% of Adjusted Net Bank Credit, against 40% for normal commercial banks.
Which was the first urban co-operative bank to become a small finance bank?
Shivalik Mercantile Co-operative Bank, which became Shivalik Small Finance Bank in 2021.
Practice Next
- Mock tests: IBPS & SBI PO Banking Awareness Mock Test 02 and IBPS & SBI Clerk Banking Awareness Mock Test 01.
- Related notes: payments banks list 2026, bank merger list 2026, banks headquarters and taglines 2026 and priority sector lending targets.
- Exam details: SBI Clerk 2026 notification.
- Browse all study notes.