Know the Deposit limits allowed in Small Finance Banks | AU Small Finance Bank
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Know the Deposit limits allowed in Small Finance Bank

    The interest rate is one of the most significant concerns for people wanting to open a Savings Account or book a Fixed Deposit (FD) or Recurring Deposit (RD). Compared to Commercial Banks, leading Small Finance Banks (SFBs), like AU Small Finance Bank, offer higher interest rates, making them a rewarding choice for investors.

    Before discussing small finance bank deposit limit, let's understand what is a Small Finance Bank, how safe it is, and much more!

     

    What is a Small Finance Bank?

    Small Finance Bank (SFB) is a segment created by the Reserve Bank of India (RBI) under the guidance of the Government of India. As per RBI, SFBs are financial institutions that address the financial needs of the marginalized sections of society. Below are some of the objectives of setting up Small Finance Banks in India:

    • Provision of savings vehicles to unserved and underserved sections of the society
    • Supply of credit to small and marginal farmers, small businesses, micro and small industries, and other unorganized sectors, through high technology-low cost operation
     

    Is It Safe to Invest in Small Finance Bank?

    Like all the other types of banks, Small Finance Banks are governed and regulated by the RBI. Basically, an SFB is a Scheduled Commercial Bank that is listed in the 2nd schedule of the RBI Act, 1934 and conforms to all criteria under clause 42 of the act. Other than SFBs, Public Sector Banks, Regional Rural Banks, Private Sector Banks, Scheduled Payments Banks, and Foreign Banks also operate as Scheduled Commercial Banks.

    Scheduled Commercial Banks are eligible to take a loan from the RBI at the bank rate. And to qualify for this status, the bank's paid-up capital and collected funds must not be less than INR 5 Lakhs.

    The target customers of SFBs are people from rural and semi-urban areas; however, anyone can take advantage of the world-class banking products and services these banks offer.

     

    How Much Money Can You Deposit in a Small Finance Bank?

    The RBI has not specified any Small Finance Bank deposit limits. Hence, customers are free to deposit any amount with an SFB up to the limit specified by the bank. 

    Each depositor in a bank is insured up to a maximum of INR 5 lakhs by Deposit Insurance and Credit Guarantee Corporation (DICGC), which is a special division of RBI that provides deposit insurance to bank deposit account holders when a bank fails to pay its depositors.

     

    About AU Small Finance Bank

    Established in 1996, we started operating as a non-deposit NBFC in the name of 'AU Financiers' through which we addressed the funding requirements of lower- & middle-class income individuals.

    Later in 2015, we bagged the Small Finance Bank (SFB) license due to our strong foothold and proven track record. 

    Today, we are recognised as one of the best Scheduled Commercial Banks in India. In addition, we are also listed as a Fortune India 500 company.

    AU Small Finance Bank offers a range of asset & liability products, including Savings Accounts, Current Accounts, Fixed Deposits, Recurring Deposits, MSME Loans, Vehicle Loans, ATMs, Locker Services, and many others.

     

    Safety Features of AU Small Finance Bank

    As the Largest Small Finance Bank in India, AU Small Finance Bank adheres to all the regulations specified by the RBI. It offers an extensive range of Savings Accounts, Fixed Deposits (FDs), and Recurring Deposits (RDs) with highly competitive interest rates to help customers grow their savings safely and securely. 

    Moreover, the bank leverages advanced technologies to offer each of its customers an enhanced level of security. Some of the highlights of AU Small Finance Bank’s safety features are as follows-

     
    • Mobile number authentication through OTP
    • AU Video Banking with AI-based facial recognition
    • Mandatory 2FA (2-Factor Authentication)
    • Instantly disable lost or stolen Debit Cards and Credit Card online through AU 0101 App/NetBanking, IVR, Chatbot or branch
     

    Banking Made Safer with AU Small Finance Bank

    While all banks are strictly regulated by RBI, measures to ensure the money in your Savings Account, FD, RD, etc., is absolutely safe, AU Small Finance Bank takes this a step further by taking additional measures to protect your funds.

    Along with high safety, high interest rates on the deposit bank accounts offered by us make it an ideal option for growing your savings. 

     

    Whether you're looking to bank through AU 0101 NetBanking or AU 0101 App or WhatsApp Banking, or AU Video Banking, you can be assured of best-in-class safety and customised services based on your needs.