Description
Taxmann Small Finance Banks Edition 2025 by Indian Institute of Banking and Finance (IIBF)
Small Finance Banks is a comprehensive and contemporary resource that explores the pivotal role and expanding footprint of Small Finance Banks (SFBs) in India. Published under the aegis of the Indian Institute of Banking and Finance (IIBF), this book details the regulatory frameworks, recent policy updates, and operational specificities governing SFBs while highlighting their impact on financial inclusion and economic development. It presents a holistic view of the SFB ecosystem—ranging from fundamental definitions to advanced topics like risk management, foreign exchange operations, technology adoption, and customer-centric strategies. Aligned with the Certificate Examination for Small Finance Banks syllabus, the text provides a robust foundation for understanding the dynamic nature of these institutions. It equips readers with practical insights to excel in this rapidly transforming segment of the financial sector.
This book is intended for the following audience:
Banking & Finance Professionals – Ideal for current and aspiring employees of SFBs, commercial banks, and other financial entities aiming to enhance their expertise and remain current on emerging regulations
Academicians & Students – A valuable companion for those pursuing advanced courses in finance, banking, and management, particularly those preparing for the Certificate Examination for Small Finance Banks offered by IIBF
Policy Makers & Regulators – Offers comprehensive perspectives on SFBs' regulatory environment, risk frameworks, governance standards, and their contribution to financial inclusion
Entrepreneurs & MSMEs – Clarifies the operational model of SFBs and shows how businesses—especially micro, small, and medium enterprises—can leverage their credit and financing solutions for growth
The Present Publication is the 2025 Edition, updated by Mr Kuldeep Kumar (Former Principal | Staff Training College – Syndicate Bank & Ex-faculty, IIBF) and vetted by Mr George Paul (Vice President – ESAF Small Finance Bank). Taxmann exclusively publishes this book for the Indian Institute of Banking and Finance with the following noteworthy features:
[Regulatory & Policy Frameworks] Covers the latest RBI directives—covering differentiated licensing, compliance standards, and financial inclusion mandates—driving the evolution of SFBs
[Comprehensive Coverage of SFB Operations] Includes chapters on day-to-day banking functions, deposit and credit operations, KYC/AML regulations, foreign exchange management, etc.
[Practical Approach & Case Studies] Employs illustrations and examples to demonstrate practical applications of concepts, such as risk assessment, credit monitoring, and customer service excellence
[Focus on Financial Inclusion] Details how SFBs reach unserved and underserved communities, offering credit and savings solutions to catalyse inclusive growth
[Mapped to Certification Requirements] Structured according to the IIBF's Certificate Examination for Small Finance Banks syllabus, aiding systematic study and exam readiness
[Expert Inputs] Curated by seasoned professionals and vetted by industry leaders, ensuring the material is authoritative and industry-relevant
The book is divided into four modules, each containing multiple chapters that progressively build from foundational to advanced topics:
Module A – Indian Financial System & Regulatory Guidelines
Financial System Overview
Outlines India's financial architecture, including roles of regulators like RBI, SEBI, NABARD, IRDAI, and the specific positioning of Small Finance Banks
Setting Up an SFB & Banking Regulations
Discusses licensing prerequisites, capital requirements, governance norms, and compliance with the Banking Regulation Act
Financial Inclusion & Literacy
Emphasises SFBs' key role in extending financial services to the underbanked, along with government-sponsored credit schemes and literacy drives
Risk Management
Explores risk identification, Basel guidelines, and best practices essential for prudent banking operations
Module B – Operational Aspects of Banking
Bank Operations & Customer Relationships
Covers deposit products, remittance services, clearing operations, and the banker-customer legal framework
KYC & AML Regulations
Highlights documentation requirements, fraud prevention, and reporting obligations in line with global standards
Negotiable Instruments & Special Cases
Examines cheques, bills of exchange, PoA, garnishee orders, and other special legal scenarios in banking
Module C – Credit & Foreign Exchange Management
Credit Appraisal & Monitoring
Delves into lending principles, working capital assessment, priority sector guidelines, and credit risk management
Documentation & Modes of Charge
Explains procedures for stamping, registration, and securitisation, alongside creating charges (pledge, hypothecation, mortgage, lien)
Recovery Mechanisms & MSME Financing
Illustrates loan recovery frameworks (SARFAESI Act), MSME support schemes, and special considerations for microfinance operations
Foreign Exchange Transactions
Introduces FEMA guidelines, forex dealing, and compliance requisites relevant to SFBs
Module D – Marketing, Technology & Customer Service (Including Soft Skills)
Marketing & Consumer Behaviour
Examines product development, pricing, branding, and distribution channels suitable for SFBs' customer segments
Para-Banking & Payment Systems
Discusses mutual funds, insurance, pension fund management, and modern payment systems like UPI, NEFT, IMPS, etc.
Data Communications & Electronic Banking
Details network infrastructure, SWIFT transfers, EFT systems, and the shift toward digital banking solutions
Customer Service & Protection
Focuses on service excellence, consumer grievance redressal, the Ombudsman Scheme, and overall compliance with RBI guidelines
The structure of the book is as follows:
Learning Objectives – Clear goals at the start of each chapter to set the direction for the study
Key Takeaways & Summaries – Concise wrap-ups to reinforce the critical aspects of each topic
Check Your Progress – End-of-chapter questions and examples to evaluate comprehension and practical application
Additional Resources – Suggestions for further reading and in-depth research, promoting continuous learning