Assessing small finance banks

Small-finance banks are niche banks with the prime motive of financial inclusion. They have to lend to small business units, small and marginal farmers, micro and small industries and unorganised-sector entities, whereas other banks can provide loans to all sections of society. There are three such banks listed on the stock exchanges: Ujjivan, AU Small Finance Bank and Equitas. Payments banks are also differentiated banks like small-finance banks, with the prime motive of financial inclusion. They aim to reach the remotest parts of India through mobile phones, which is economical as compared to expensive traditional