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What are the challenges to Small Finance Banks?

By IndianMoney , 9 months ago

Challenges of Small Finance Bank: 1. Have to compete with existing public sector banks and RRBs. 2. Micro Finance Institution (MFI)/NBFC are specialised in micro lending operations with limited exposure to banking operations; that means they have to hire, train talent from the banking industry. 3. The cost of deposit mobilisation will be higher for these banks as they cover rural and underserved segment.

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