Investing in stocks and mutual funds helps grow your wealth and dividends are a key benefit. It’s an extra income paid by companies to shareholders. However, dividends are taxable in India.
Earlier, companies paid a Dividend Distribution Tax (DDT), making dividends tax-free for investors. But since April 2020, the tax burden has shifted to investors, requiring them to report and pay taxes on dividend income.
Understanding the taxation of dividend income is very important, as tax rates vary for residents, NRIs and foreign investors. The tax treatment also differs for dividends from mutual funds and Indian or foreign companies.
Read on to know how tax on dividend income for individuals is calculated, applicable tax rates on dividends and ways to manage your tax liability.
What is Dividend Income?
Dividends are a portion of a company’s profit that is paid by companies to their shareholders. These payments are done either in cash or extra shares. One can receive dividends from:
Indian or foreign company stocks
Equity mutual funds (dividend option)
Debt mutual funds (dividend option)
Earlier, dividends were tax-free for investors because companies used to pay a Dividend Distribution Tax (DDT). But from April 2020, the rules changed — now, investors have to pay tax on the dividends they receive.
How is Dividend Income Taxed?
The tax rate on dividends depends on whether you are an Indian resident, an NRI or a foreign investor:
Indian residents: Dividends are added to your total income and taxed as per your income tax slab.
NRIs: A flat 20% tax rate on dividends from Indian company shares applies.
Foreign Portfolio Investors (FPIs): Also pay a 20% tax rate on dividends from Indian securities.
If you receive dividends from foreign companies, they are considered ‘Income from Other Sources’ and taxed at your regular income tax slab rate.
Do Companies Deduct TDS on Dividends?
Yes, companies do deduct TDS on dividends. You can check your Form 26AS to see how much TDS has already been deducted and you may need to pay the remaining tax when filing your income tax return.
The tax on dividends in India also includes Tax Deducted at Source (TDS):
If you receive ₹5,000 or more in dividends from an Indian company, they will deduct 10% TDS before paying you.
For NRIs and foreign investors, TDS is 20%.
Taxation of Dividend Income from Mutual Funds
How dividends from mutual funds are taxed depends on the type of fund:
Equity Mutual Funds: Taxed as per your income tax slab.
Debt Mutual Funds:
If held for less than 3 years: Gains are added to your income and taxed according to your tax slab.
If held for more than 3 years: Gains are taxed at 20% with indexation benefits, which reduces your tax liability.
Do You Need to Pay Advance Tax on Dividends?
If your total tax liability in a year exceeds ₹10,000, you are required to pay advance tax in installments:
15% by June 15
45% by September 15
75% by December 15
100% by March 15
If you don’t pay advance tax on time, you may have to pay interest under Sections 234B and 234C.
What About Foreign Dividends?
If you earn dividends from a foreign company, you might have already paid tax in that country. To avoid being taxed twice, India has Double Taxation Avoidance Agreements (DTAA) with many countries.
To claim tax relief, you need:
A Foreign Tax Credit (FTC) form when filing your tax return
Proof of tax paid abroad
Conclusion
Understanding the taxation of dividend income helps you avoid surprises at tax time. Whether you invest in Indian or foreign stocks or mutual funds, knowing the tax rules can help you plan better and reduce your tax burden.
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FAQs
1. How much are dividends tax-free?
No, the tax on dividends in India depends on your income tax slab. Companies deduct 10% TDS if your total dividend income exceeds ₹5,000 in a year.
2. Are dividends from foreign companies taxable?
Foreign dividends are considered ‘Income from Other Sources’ and taxed at your income tax slab rate. You can claim tax relief under DTAA if you’ve already paid tax in the foreign country.
3. How do I handle dividend income from joint accounts?
If a joint account receives dividend income, it is usually split based on the ownership percentage. Each person must report their share of the income while filing their tax return.
URN is commonly known as Update Request Number. It is a unique 14-digit code that UIDAI issues the moment you submit a request to change any detail on your Aadhaar card. In banking and Aadhaar-linked services, the same term is used to mean this tracking code, not a separate banking product. It works like a tracking ID: enter it on the UIDAI portal along with your Aadhaar number and you’ll instantly see whether your update request is pending, approved, or rejected.
Aadhaar updates such as change of address, name, mobile number, or email ID takes a few days to process and without a way to track progress, applicants are often left guessing whether their request went through at all. The URN solves this by giving every update request its own reference number, so its status can be checked anytime, online or offline.
This guide covers what a URN is, how the system works, how to get one and every method available to check your status.
What is URN Number?
URN stands for Update Request Number (also called Update Reference Number), a 14-digit code generated automatically once you submit a request to update any field in your Aadhaar record. It’s typically formatted as three groups of digits — 4, 5 and 5 — separated by slashes, e.g. 1234/56789/01234.
Think of it as a courier tracking number for your Aadhaar update. Plugging it into the UIDAI system tells you exactly where your request stands, without repeat visits or phone calls — making the process transparent for you and traceable for UIDAI’s back-end verification team.
How Does the URN System Work?
The URN system is built to make Aadhaar updates simple, accountable and easy to follow from submission to approval:
Instant assignment: Generated the moment you submit an update request, online through the Self-Service Update Portal (SSUP) or offline at an Aadhaar Enrolment Centre.
One URN per request: Maps to exactly one update. You cannot reuse an old URN for a new request.
Live status tracking: Checkable anytime to see if the request is under process, approved, or rejected.
Dual access: Verifiable digitally on the UIDAI website or in person at any Aadhaar Enrolment Centre.
Document-backed verification: Every request carries a supporting document, which UIDAI’s Back-end Processing Operator (BPO) reviews before approving the change.
How to Get a URN Number?
A URN is issued automatically as the final step of submitting an Aadhaar update request. Here’s how it plays out online: 1 Go to the myAadhaar portal and click Login. 2 Enter your Aadhaar number and captcha, then click Send OTP. 3 Enter the OTP sent to your registered mobile number and log in. 4 Select the field(s) to update — name, address, mobile, email, etc. 5 Enter the corrected details and upload a supporting document. 6 Click Submit. Your 14-digit URN is generated instantly.
Save this number immediately via a screenshot or the acknowledgment slip if updating offline, since it’s the only way to track that specific request going forward.
How to Check URN Status Online?
There are three ways to track your Aadhaar update online, each suited to a different situation.
1. Via the UIDAI Website — the fastest, most direct method.
Visit the UIDAI portal and open the Aadhaar update status section.
Enter your Aadhaar number followed by your URN.
Click Submit — your current status displays instantly.
2. Via the Aadhaar Helpline — useful without internet access.
Call the UIDAI helpline number and follow the voice instructions.
Enter your URN using your phone’s keypad when prompted.
The system or a representative confirms your status verbally.
3. Using the Service Request Number (SRN) — an alternative for online updates.
Enter your SRN and Aadhaar number in the designated field on the UIDAI website.
Submit to view your status, exactly as you would with a URN.
How to Check URN Status Offline?
If you’d rather avoid the digital route, checking offline is just as straightforward:
Locate the nearest Aadhaar Enrolment Centre.
Visit during working hours, carrying your acknowledgment slip (it has your URN printed on it).
Hand the slip to the centre official and ask them to check your update status.
The official will look it up on the UIDAI system and tell you the current status on the spot.
What Does the URN Status Mean?
Checking your URN will usually return one of these:
Under Process: Received and being verified by UIDAI’s back-end team.
Approved / Processed: Update completed; an updated e-Aadhaar is available for download.
Rejected: Could not be completed, usually due to a document mismatch or incomplete information — UIDAI generally shows a reason.
Difference Between URN and SRN
Both track Aadhaar-related requests, but they aren’t interchangeable:
Tracks broader Aadhaar service requests, including online updates and complaints
When issued
On submitting an update request, online or offline
Mainly for requests initiated online through UIDAI’s portal
Format
14-digit number
Alphanumeric, varies by request type
Use case
Checking status of a name, address, mobile, or email change
Checking status of grievances or other online service requests
What Happens If Your URN is Rejected?
A rejected URN means the specific update didn’t go through, it doesn’t affect your existing Aadhaar card or its validity. You’ll typically need to:
Check the rejection reason, often shown alongside the status.
Correct the issue — re-upload a clearer document or fix a data mismatch.
Submit a fresh update request, which generates a brand-new URN.
A rejected URN cannot be revived or reused; you must restart the update process.
Losing your URN makes tracking difficult, since even Aadhaar centre staff need it to pull up your request. If misplaced, visiting an Enrolment Centre with your Aadhaar number and supporting documents is the best next step, though resolution may take longer without the reference number. Noting your URN down the moment you receive it is the simplest way to keep the process stress-free.
FAQs on URN Number
1. What is the full form of URN?
URN stands for Update Request Number, the 14-digit code UIDAI generates when you submit an Aadhaar update.
2. Can I use the same URN for multiple Aadhaar update requests?
No. Each URN is tied to a single request; a fresh request always generates a new URN.
3. Can businesses track multiple URNs at once?
Yes, businesses handling several Aadhaar updates can use bulk tracking tools or integrated systems offered by UIDAI to monitor multiple URNs together.
4. What if I lose my URN?
Tracking becomes difficult, since even Aadhaar centre staff need it to pull up your request. Keep the acknowledgment slip or a note of the number safe until the update completes.
5. What is URN number in bank?
In banking, URN refers to the same Update Request Number used for Aadhaar. Banks often ask for it during an Aadhaar-linked KYC update to confirm the change has gone through before updating their own records.
6. What is URN full form in banking?
It still expands to Update Request Number (or Update Reference Number) — not a separate banking term, just the UIDAI code referenced during Aadhaar-linked KYC or account updates.
7. How do I check my URN number status online?
Visit the UIDAI portal’s Aadhaar update status section and enter your Aadhaar number with your URN. Your status shows up instantly on screen.
Running a small business comes with many responsibilities and one of the most important ones is tax planning. Managing taxes properly can help businesses save money, avoid penalties and keep finances stable. But tax rules can be tricky and that’s where banks come in. They offer expert advice, special accounts and easy-to-use tools to help business owners handle taxation for business efficiently.
Let’s explore how banks can make tax planning for business simpler and more effective.
What is Tax Planning for Small Businesses?
Tax planning is all about managing money smartly to reduce tax payments while following legal rules. It includes using tax deductions, exemptions and credits to lower tax liabilities. When done right, it helps businesses improve cash flow and avoid unnecessary tax burdens.
Banks support small businesses by providing financial expertise, specialised banking products and digital tools that make taxation for small business easier to handle. With their help, business owners can make informed financial decisions and stay compliant with tax laws.
How Banks Help Small Businesses with Taxes?
1. Expert Tax Advice
Many banks have financial experts who specialise in helping small businesses. They provide:
Tips on which expenses can be deducted from taxes
Guidance on tax-saving benefits and exemptions
Strategies for planning taxes for the upcoming financial year
For example, tax professionals at banks can help businesses take advantage of benefits like the Small Business Health Care Tax Credit or the Work Opportunity Tax Credit. This ensures businesses get all the tax breaks they qualify for while staying compliant with taxation for small business rules.
2. Business Accounts That Simplify Taxes
Banks offer business accounts that come with built-in features to make taxation for business easier, such as:
Expense tracking – Categorises expenses to highlight deductible costs automatically
Tax calculators – Helps estimate how much tax needs to be paid
Software integration – Connects with accounting tools like QuickBooks for real-time tracking
With these features, businesses can keep accurate financial records, which is essential for tax planning for business.
3. Tax-Saving Retirement Plans
Banks also help small business owners set up retirement plans that offer tax benefits under Sections 80C and 80CCD. Some common options include:
These plans not only secure future savings but also reduce taxable income, making taxation for business more efficient.
4. Hassle-Free Tax Filing
Filing taxes can be stressful, but banks make it easier by partnering with tax-filing platforms. They offer services like:
Tax filing assistance – Helping businesses file returns accurately and on time
Reminder alerts – Businesses are notified about tax deadlines to avoid penalties
By using these services, small businesses can ensure they meet their tax obligations without last-minute stress.
5. Smart Income and Expense Management
Banks can also help businesses plan when to report income and expenses to reduce their tax burden. Some common strategies include:
Deferring income – Delaying payments or invoices to move income into the next financial year
Accelerating expenses – Making necessary purchases before year-end to claim tax deductions sooner
These strategies require careful planning and banks provide expert guidance to help businesses use tax planning for business effectively.
6. Relocation Advice for Tax Savings
Sometimes, moving a business to a different location with lower tax rates can help save money. Banks assist in analysing factors like:
Corporate tax rates
Property taxes
Operating costs
They also provide financing options and strategic advice for businesses considering relocation to optimise taxation for small business.
Conclusion
Smart tax planning for business can help small businesses save money and grow. Banks play a crucial role by offering expert financial advice, tax-friendly accounts and retirement plans that reduce tax burdens. They also simplify tax filing, help manage income and provide insights on relocation.
By leveraging banking services, small businesses can make taxation for business easier and focus on long-term success.
FAQs
1. What is the tax planning of a new business?
It’s about organising finances to legally reduce tax payments while using deductions and credits to save money.
2. Do small businesses pay taxes in India?
Yes, small businesses must comply with taxation for small business rules, including corporate tax, GST and income tax.
3. How do businesses save taxes?
By using tax deductions, credits, retirement plans and depreciation benefits through proper tax planning for business.
If you run a business, accepting online and card payments is a must. A merchant account makes this process smooth, helping you manage transactions easily while improving cash flow. Whether you own a small shop or an online store, setting up a merchant account ensures hassle-free payments.
Read on to know everything about merchant accounts, their types and importance.
Merchant Account Meaning
A merchant account is a special type of bank account that lets businesses accept payments through:
Credit and debit cards
UPI and digital wallets
QR codes
Net banking
Think of it as a middleman between your customer’s payment and your business bank account. Once a customer pays, the money first goes to your merchant account before being transferred to your actual business account.
Having a merchant account is super helpful, whether you run a physical store or an online business. It makes transactions easier, helps you get quick loans and even gives you extra security features to prevent fraud.
Types of Merchant Accounts
Choosing the right merchant account depends on how your business operates. Here are two main options:
1. Retail Merchant Account
Perfect for businesses with a physical store like supermarkets, restaurants and pharmacies. It allows you to accept payments via:
Card machines (for debit/credit cards)
UPI and QR codes (like BharatQR)
Since these businesses process many transactions daily, they usually enjoy lower transaction fees.
2. E-commerce Merchant Account
If you run an online store, this merchant account is a must. It lets customers pay directly on your website using cards, UPI, or wallets. Since more people prefer online shopping, having this option can help boost your sales.
Steps to Open a Merchant Account
Setting up a merchant account is simple if you follow these steps:
1. Register Your Business
Before you apply, make sure your business is officially registered. You’ll need:
Certificate of Incorporation
GST registration
Business PAN
2. Open a Business Bank Account
A separate business account is required to receive payments from your merchant account. This keeps your personal and business finances separate.
3. Understand Your Business Needs
Check on the below with yourself:
How many transactions do I process daily?
Which payment methods do my customers prefer?
Do I need a card machine for in-store payments or an online payment gateway?
4. Compare Service Providers
Banks and payment processors offer different merchant account options. Compare:
Setup costs and transaction fees
Security features (like fraud protection)
Customer support availability
5. Submit Your Application
Once you choose a provider, fill out the merchant account application and prepare these documents:
Business registration certificates
GST Certificate
Business PAN
Utility bill for address proof
Identity proof of the owner
6. Get Approved
The bank will review your application and check your business’s financial health. They might also look at your past transactions to assess any risks.
7. Start Accepting Payments
Once approved, your merchant account is ready! You’ll get tools like:
A card machine (for retail businesses)
An online payment gateway (for e-commerce businesses)
Why Do You Need a Merchant Account?
A merchant account makes payment processing super easy. It:
Helps you accept multiple payment methods
Improves cash flow with faster transactions
Makes your business look more professional
Provides security features to protect against fraud
What is Merchant Pay?
Ever wondered what is merchant pay? It simply refers to businesses accepting digital payments through a merchant account. Whether it’s credit cards, UPI, or net banking, a merchant account ensures quick and secure transactions.
Setting up a merchant account is one of the best decisions for any business. It makes payments smooth, secure and customer-friendly. So, if you haven’t yet, it’s time to open a merchant account and start accepting payments the easy way.
FAQs on Merchant Account
How do I integrate my merchant account with accounting software?
Most payment processors work with tools like QuickBooks and Xero. Check with your provider for integration steps.
What should I do if I suspect fraudulent activity on my merchant account?
Contact your payment provider and bank immediately. They’ll investigate and take action to secure your account.
Can a merchant account help me increase sales?
Yes, offering more payment options makes it easier for customers to buy, boosting sales and trust.
How do I close or cancel a merchant account?
Reach out to your service provider and follow their closing process. Make sure all pending transactions are completed before closing.
Ever wished managing your finances was as easy as ordering food online? That’s what Open Banking brings to the table! It allows banks to share your financial data with your consent to trusted apps. It helps in making budgeting, loan approvals and payments smoother than ever.
But how does it work and what’s in it for you? Read on to understand in depth.
What is Open Banking?
Open Banking is a game-changer for how you manage your money. It allows banks to securely share your financial data with trusted apps and services but only with your permission. This means you can see all your accounts in one place, get better loan offers and even make payments more easily.
It’s like letting your budgeting app access your bank to track spending and boost savings. The safety and convenience put you in control of your finances. Plus, it can speed up loan approvals and offer personalised financial products.
How Does Open Banking Work?
Open Banking works using special technology called APIs, which help banks and financial apps connect securely. APIs are like messengers that let these services share information safely with the required permission.
There are 3 major types of APIs in Open Banking:
Data APIs: Let apps see your account details, balance and past transactions but they cannot make changes.
Transaction APIs: These allow you to send money, set up automatic payments or make quick transactions.
Product APIs: It shows different financial products, like loans or savings plans, so you can compare and pick what’s best for you.
Examples of Open Banking
Open Banking connects different financial services to make banking smarter and more convenient. Here are some common open banking examples:
Faster Payments: Retailers can accept payments directly from your bank, reducing fees and wait times
All-in-One Account View: See all your bank accounts in one place for better money management
Smart Budgeting: Apps track your spending and help you stay on top of your finances
Instant Loans: Quick access to financial data speeds up loan approvals
Easy Bill Matching: Businesses automatically match invoices with payments, saving time
Multi-Bank Access: Companies manage funds from different banks on a single dashboard
Fraud Protection: Real-time tracking helps detect and prevent fraud instantly
The above-mentioned open banking examples show how it’s making financial management easier, faster and more secure for everyone.
Advantages of Open Banking
Open banking services offer many benefits for both individuals and businesses:
Smarter Decisions: Access to detailed financial data helps estimate risks and make better choices
Faster Operations: Quick data sharing speeds up transactions and reconciliations
Personalised Services: Get customised loan options and rewards based on your needs
Seamless Payments: Direct payments through APIs reduce costs and speed up the functions
Easier Compliance: Standardised processes help businesses follow regulations smoothly
Boosts Innovation: Encourages collaboration between banks and tech firms to provide better services
From individuals to businesses, open banking is transforming financial services for everyone.
Listed below are the key benefits:
Individuals: Track spending, automate payments and get personalised financial insights
Banks & Fintechs: Upgrade services and develop smarter financial tools
Small Businesses: Automate invoice verification and improve cash flow management
E-Commerce Companies: Process payments directly while cutting costs
Developers: Build apps using Open Banking APIs.
Lenders: Use real-time data for faster loan approvals
In conclusion, open banking is making finance smarter and more convenient. So, as open banking makes financial services smoother, why not experience the ease yourself?
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FAQs on Open Banking
Does Open Banking work outside regular banking hours?
Open banking APIs work daily, so you can access financial services without interruption.
Can I get a refund for paid open banking services?
Refunds depend on the rules set by the service company. Check the terms before completing any purchases.
Does Open Banking support international transactions?
Yes, many open banking systems allow foreign payments but it depends on the rules in each area.
Retail banking is basically for people and Corporate banking is for businesses. That’s the difference between retail and corporate banking in one line. But if you’ve ever wondered why your salary account works so differently from how a company manages its finances, there’s more to it than just ‘who uses it.’
When people search for retail vs corporate banking, they’re usually trying to figure out which one applies to them right now. If you’re an individual managing a salary account or a home loan, you’re already inside the world of retail banking. If you own a business and need funds for expansion, inventory, or handling overseas suppliers, you’re looking at corporate banking instead.
Why does this distinction matter? For an individual, it decides which products, interest rates and loan terms even apply to you – walk into a bank asking for a working capital loan as a salaried employee and you won’t get far. For a business owner, understanding retail and corporate banking helps you avoid a banking relationship that can’t offer the cash management or trade finance tools your company actually needs.
Let’s break down both and where they stop overlapping.
What is Retail Banking?
Retail banking covers the banking most of us grew up with. Savings accounts, personal loans, credit cards, fixed deposits – the everyday stuff. It’s built around individual customers, not companies or institutions.
Every time you swipe a debit card, transfer money through a UPI app, or apply for a car loan, you’re using retail banking. It exists to make personal money management easy and most banks now lean on apps and online banking to do exactly that.
A few common examples of retail banking in daily life:
Savings and current accounts, where you deposit, withdraw and manage day-to-day money
Personal loans and credit cards for emergencies or regular spending
Fixed deposits and recurring deposits that let your savings earn interest over time
Mobile and internet banking, which now handles most transfers and bill payments
Insurance and investment products like mutual funds, sold through many retail banks as an add-on service
What is Corporate Banking?
Corporate banking works on a completely different scale. It’s built for businesses – from small firms to large corporations that need financial support beyond what a personal savings account could offer.
Think of it as the banking arm keeping a company’s cash flow, expansion plans and international deals running smoothly. A few of its core offerings:
Working capital loans – short-term funding to cover day-to-day costs like salaries, raw materials, or rent
Trade finance – tools such as letters of credit that reduce risk in import-export deals
Treasury management – services that help businesses manage liquidity and short-term investments
Foreign exchange services – currency conversion and hedging for companies dealing with international clients
A startup taking a working capital loan to manage seasonal demand, or a manufacturer using trade finance to import machinery, are both everyday examples of corporate banking at work.
Advantages of Retail Banking
Retail banking isn’t glamorous, but it earns its place for a few solid reasons:
It’s convenient – branches, ATMs and apps mean you rarely plan your day around banking. It also offers a wide product range, from a simple savings account to a fixed deposit that grows over five years. Most retail banks provide decent customer support for account issues or loan queries and their reach extends well beyond big cities, which matters in a country where many people are still opening their first bank account.
Advantages of Corporate Banking
For businesses, the advantages look a little different because the stakes are higher.
Corporate banks build custom financial packages rather than one-size-fits-all products – loan structures, credit lines and treasury services shaped around what the business actually needs. They also open the door to large-scale funding a business couldn’t get through a personal loan. Most corporate clients get a dedicated relationship manager too, someone who understands the company’s finances well enough to advise on real decisions. And for companies dealing internationally, access to forex and trade finance tools makes cross-border business less risky.
Difference Between Retail Banking and Corporate Banking
Here’s how the two compare, side by side:
Feature
Retail Banking
Corporate Banking
Who it’s for
Individuals & salaried professionals
Businesses & large corporations
Main services
Savings & current accounts, personal loans, credit cards
Working capital loans, commercial real estate loans
Account management
Managed by the individual customer
Handled by finance teams or corporate representatives
Transaction volume
Lower, with small and frequent transactions
High-value transactions and bulk payments
Risk level
Lower, since individuals borrow smaller amounts
Higher, since businesses need large funding
Interest rates
Fixed or slightly variable
Custom, based on business size and creditworthiness
Banking relationship
Standardised for all customers
Dedicated relationship managers
Revenue model
Interest spreads, service fees, card charges
Loan interest, trade finance fees, treasury service charges
Customisation level
Mostly standardised products
Highly customised, based on industry and scale
Examples
Home loan, credit card, fixed deposit
Working capital loan, letter of credit, forex hedging
In Short
Retail and corporate banking aren’t competing for systems, they’re built for different jobs. One keeps personal finances simple. The other gives businesses the scale and funding to grow. Knowing which one you need saves time and gets you to the right banking desk faster.
That said, sometimes you just need cash quickly, business or not. Fibe offers instant personal loans with easy repayment options – up to ₹10 lakhs credited to your account within minutes.
1.Are interest rates on loans different in corporate banking and retail banking?
Generally, yes. Corporate banks tend to offer lower rates on large business loans since they evaluate cash flow and collateral differently. Retail loans, being smaller and less secured, often carry higher rates.
2.Are retail banking fees lower than corporate banking fees?
Usually. Retail transactions are simpler and cheaper to process, so fees stay low. Corporate banking involves complex services like trade finance, which cost more to deliver.
3.Are retail banking accounts more secure than corporate banking accounts?
Not necessarily – both fall under the same regulatory protections. The difference is exposure: retail accounts handle smaller, routine transactions, while corporate accounts deal with larger sums and more complex activity, which carries more inherent risk.
4.What is the main difference between retail banking and corporate banking?
Retail banking serves individuals with everyday financial products. Corporate banking serves businesses with larger loans, trade finance and treasury tools built around company-specific needs.
5.Can a person use both retail and corporate banking services?
Yes. Someone can hold a personal savings account through retail banking while also running a business account through corporate banking, the 2 aren’t mutually exclusive.
6.What products does retail banking offer?
Savings and current accounts, personal loans, credit cards, fixed and recurring deposits and in some cases, insurance or mutual fund products sold alongside core banking services.
This article explains what Small Finance Banks are, lists all 11 SFBs operating in India in 2026, compares their savings and FD interest rates, and shows how they differ from commercial banks.
India currently has 11 operating Small Finance Banks (SFBs), regulated by the Reserve Bank of India (RBI), after Fincare Small Finance Bank merged into AU Small Finance Bank in 2024. AU Small Finance Bank remains the largest by assets, followed by Equitas, Ujjivan and Utkarsh. Most SFBs price savings accounts and fixed deposits noticeably higher than large commercial banks, in exchange for a smaller branch network.
Small Finance Banks were created to solve one specific problem: millions of small businesses, farmers and low-income households in India could not easily get a savings account, a loan or a fixed deposit from a traditional bank. The RBI licensed the first batch in 2015 to close that gap.
QUICK STAT
12 SFB licences have been issued by the RBI since 2015 – 11 are independently operating in 2026, after Fincare merged with AU Small Finance Bank in 2024. (Source: RBI)
What is a Small Finance Bank (SFB)?
A Small Finance Bank is a niche banking licence category created by the RBI in 2015 under the Banking Regulation Act, 1949. Unlike universal banks, an SFB exists for one core purpose: extending banking and credit access to people that mainstream banks have historically underserved – small business owners, marginal farmers, migrant workers and low-income households.
SFBs can accept deposits, issue debit cards, offer fixed deposits and lend, just like any other bank. What sets them apart is the RBI mandate to keep the bulk of their lending focused on priority sectors – which is exactly why SFBs tend to compete hardest on savings and FD rates rather than branch count.
The Rise of Small Finance Banks
The RBI issued the first 10 SFB licences in 2015 and approved two more later, taking the total to 12. Most evolved from Non-Banking Financial Companies (NBFCs), Microfinance Institutions (MFIs) and Local Area Banks with deep roots in underserved markets, which is why several SFBs still lead in rural lending and microfinance today, even as they add city branches and mobile banking to compete with larger players.
Who Do Small Finance Banks Serve? Target Customers & Sectors
SFBs exist to serve people traditional banks often overlook: small business owners, marginal farmers, micro-entrepreneurs and low-income households in rural and semi-urban India. Most also offer micro-loans, gold loans and small-ticket personal loans built around these customers’ cash flow patterns.
At least 75% of Adjusted Net Bank Credit (ANBC) must go to priority sectors – agriculture, small businesses and affordable housing
At least 50% of total loans must be ₹25 lakh or less, so credit does not just flow to large borrowers
DID YOU KNOW?
This dual mandate is what keeps SFBs anchored to small borrowers even as they grow – it’s a structural rule, not a branding choice. (Source: RBI)
What are the Key Features and RBI Rules for SFBs?
Capital Requirement: minimum ₹200 crore in paid-up capital
Promoter’s Contribution: promoters must hold at least 40% of paid-up capital for the first five years
Foreign Investment: FDI follows private bank norms, capped at 74%
Branch Expansion: at least 25% of branches must sit in unbanked rural centres
Loan Focus: at least half of total loans must be ₹25 lakh or less
Stock Market Listing: mandatory listing within three years of net worth crossing ₹500 crore
Transition to Universal Bank: strong five-year performers can apply to convert into a full-fledged universal bank
List of All Small Finance Banks in India
The RBI has licensed 12 Small Finance Banks since 2015. Fincare Small Finance Bank merged into AU Small Finance Bank in 2024, which brings the number of independently operating SFBs to 11 as of 2026.
Bank Name
SFB Since
Key Strength
Why It Stands Out
AU Small Finance Bank
2017
Digital-first, urban + rural reach
Largest SFB by assets; merged with Fincare Small Finance Bank in 2024
Equitas Small Finance Bank
2016
Diverse loan portfolio
Started as an NBFC in 2007; one of the earliest SFB conversions
Ujjivan Small Finance Bank
2017
Microfinance heritage
Built from a microfinance institution serving urban low-income households
ESAF Small Finance Bank
2017
Rural & tribal outreach
Strong presence across Kerala and South India
Utkarsh Small Finance Bank
2017
Priority sector lending
Listed on NSE/BSE; concentrated in UP and Bihar
Suryoday Small Finance Bank
2017
Micro & affordable housing loans
Strong base in Maharashtra and Odisha
Jana Small Finance Bank
2018
Secured + unsecured lending mix
One of the larger SFBs by loan book size
Capital Small Finance Bank
2016
Oldest SFB, Punjab-focused
First SFB to receive an RBI licence
Shivalik Small Finance Bank
2021
Digital-native model
Converted from an urban co-operative bank
North East Small Finance Bank
2018
Remote area banking
Focused on underserved North-East India
Unity Small Finance Bank
2021
PMC Bank revival
Formed to take over the troubled Punjab & Maharashtra Co-operative Bank
Interest Rates Offered by Small Finance Banks in India (Savings & FD)
SFBs are known for one thing above all: better interest rates on savings accounts and fixed deposits than most large commercial banks, since their cost of funds differs and they’re actively building a deposit base.
Deposit Type
Small Finance Banks (typical)
Large Commercial Banks (typical)
Savings Account
approx. 4% – 7.5%
approx. 2.7% – 3.5%
Fixed Deposit (1-3 years)
approx. 7% – 9%
approx. 6.5% – 7.5%
WATCH OUT
Rates shown are indicative and change frequently by bank, tenure and deposit amount. Always confirm current rates on the specific bank’s website before investing.
Here’s what that rate gap looks like in practice. Meena, who runs a small tailoring unit near Nashik, moved her ₹2 lakh savings into a 2-year FD with an SFB paying 8%, instead of her old commercial bank’s 7%. Using simple annual interest as a rough guide, that works out to roughly ₹32,000 in interest over two years at the SFB versus ₹28,000 at the commercial bank – about ₹4,000 extra, enough to cover a chunk of her raw material costs for her next order.
Deposits up to ₹5 lakh per bank are protected under DICGC insurance – the same cover that applies at any Indian bank, small finance or otherwise.
Small Finance Banks vs Commercial Banks: Key Differences
The core difference comes down to purpose: SFBs serve priority sectors and financially excluded customers, while commercial banks serve every segment of the economy. That distinction shapes branch size, loan ticket sizes and the range of services on offer.
Parameter
Small Finance Banks
Commercial Banks
Primary Focus
Priority sector & financial inclusion
Broad-based banking for all segments
Branch Network
Smaller, concentrated in specific regions
Large, pan-India presence
Savings/FD Rates
Generally higher
Generally lower
Loan Size Focus
Mostly ₹25 lakh or less
No such restriction
Service Range
Core banking + a limited product suite
Full suite: forex, wealth management, corporate banking
Regulatory Mandate
75% of ANBC to priority sectors
No equivalent mandate
Challenges Facing Small Finance Banks & Future Outlook
SFBs have grown fast, but they face real challenges. Staying profitable while serving low-income customers is harder than it sounds – smaller loan sizes mean higher operating costs per rupee lent, and many customers carry a higher credit risk profile than at typical banks. SFBs must manage this risk carefully while meeting strict regulatory requirements.
That said, their focus on financial inclusion puts them on a solid growth path. As competition rises, SFBs will need to keep investing in digital banking and UPI-based products. How well they expand into unbanked areas while staying digitally competitive will decide their role in India’s financial system going forward.
Comparing FD rates across small finance banks and other lenders can get tedious. Explore Fibe Fixed Deposits to compare and book FDs from multiple partner banks and NBFCs in one place.
FAQs On Small Finance Banks in India
1.Which is the best small finance bank in India for FD interest rates?
There is no single best bank, since rates change often and vary by tenure. AU Small Finance Bank, Equitas, Suryoday and Unity Small Finance Bank regularly offer above-average FD rates. Always compare current rates on each bank’s website before investing.
2.Is money safe in small finance banks in India?
Yes. SFBs are RBI-regulated, and deposits up to ₹5 lakh per bank are protected under DICGC insurance, same as at any commercial bank.
3.What is the minimum deposit in a small finance bank?
This varies by bank and account type. Many SFBs offer zero-balance savings accounts, while some ask for a minimum balance of 1,000 to 10,000 rupees.
4.Do small finance banks offer insurance services?
Yes. DICGC deposit insurance protects up to ₹5 lakh per account, and several SFBs also partner with insurers to offer life, health and general insurance products.
5.Do small finance banks offer services in rural and semi-urban areas?
Yes, this is essentially their reason for existing. Small finance banks are regulated by the RBI specifically to extend banking services into rural and semi-urban India, focusing on unbanked and underserved customers.
6.I have a fixed deposit maturing in a small finance bank. Is it renewed automatically?
Most SFBs auto-renew FDs on maturity unless you have opted out. Check net banking or visit a branch beforehand if you would rather withdraw instead.
7.How many small finance banks are there in India right now?
As of 2026, there are 11 operating small finance banks in India, following Fincare Small Finance Bank’s merger with AU Small Finance Bank in 2024.
8.Can I get a personal loan from a small finance bank?
Yes, though ticket sizes and eligibility criteria tend to be more conservative than at larger banks, given the priority-sector lending mandate.
Investing in mutual funds is a great way to grow your money but it’s important to know the rules and fees that come with them. One key factor to consider is the exit load— a fee that some Asset Management Companies (AMCs) charge when you sell or withdraw your mutual fund units before a certain period. Understanding this cost can help you make smarter investment decisions and avoid unnecessary charges.
This space will help you understand the meaning of exit load in mutual funds and how to calculate it.
What is the Exit Load in a Mutual fund?
When you sell your mutual fund units early, Asset Management Companies (AMCs) may charge an exit load. It is a fee designed to discourage quick withdrawals and keep the fund stable. Selling before the set period can disrupt the fund’s balance, so this charge helps protect both investors and the fund.
The exit load is usually a small percentage of the mutual fund’s Net Asset Value (NAV), which is the total value of the fund’s assets minus its debts. When you sell your units, the exit fee is deducted and you receive the remaining amount. To know exactly how much you’ll get, you can use an exit load calculator.
What are the Exit Fees for Different Mutual Funds?
The fees vary based on the type of mutual fund, how long you have invested and fund rules. Some funds don’t have exit loads at all!
Here’s a list of mutual funds that have exit fees:
Equity Funds: Selling within a year usually comes with a 1-2% exit fee, which may reduce over time. If you are withdrawing within 6 months, then an exit fee of around 2% will be levied. After a year, it’s often free.
Debt Funds: These low-risk funds may charge a small exit fee if you withdraw within a few months. Usually, if you withdraw within 2 to 3 months.
Hybrid Funds: Since these are a mix of stocks and bonds, exit fees depend on the equity portion — higher equity means higher charges.
Tax-saving Funds (ELSS): These have a strict 3-year lock-in period. Withdrawing early could come with penalties.
Index Funds: Here, the fees vary but many don’t have exit charges. Always check the fund’s terms for this segment.
How to Calculate Exit Load in Mutual Funds?
Calculating the exit load in mutual funds is simple. It’s a small percentage of the fund’s Net Asset Value (NAV) at the time of withdrawal.
Let’s understand this with an example:
Suppose you invested ₹30,000 in January 2022 when the NAV was ₹100, giving you 300 units.
If you withdraw after 4 months (May 2022), when the NAV has increased to ₹110, a 1% exit load applies.
The exit load calculation in mutual funds works like this:
Exit fee per unit = 1% of ₹110 = ₹1.10 per unit
Total exit load = 300 units × ₹1.10 = ₹330
Final amount after exit load = (300 × ₹110) – ₹330 = ₹32,670
To easily sum this, you can use an exit load calculator to find out how much you will receive after deductions.
In this above scenario, after the exit fee, you’d get ₹32,670.
The Bottom Line
Exit load is an important factor to consider when investing in mutual funds, as it varies based on the type of fund and holding period. Using a mutual fund exit load calculator helps you understand the fees before making a decision.
If you need funds but don’t want to sell your investments, Fibe’s Loan Against Mutual Funds is a smart option. With instant approval, get access to cash up to ₹10 lakhs and pay only interest.
FAQs on Exit Load on Mutual Funds
Does every mutual fund have an exit load?
Some mutual funds do not have an exit fee. A few, like index or long-term investment funds, might not charge any closing fee. Always review the terms of the plan before spending.
Can I calculate the exit load before redeeming my units?
Yes, you can select the exit load before you sell your units. It depends on the fund’s value when you cash out and the exit fee amount.
Are there funds that offer zero exit load?
Yes, some mutual funds do not charge a leaving fee. These are usually long-term financial funds or specific kinds of index funds. Always check the plan information to know the exit load rules.
The Public Provident Fund (PPF) is a great way to save and grow your money with guaranteed returns and tax benefits. It’s a government-backed scheme that helps you build wealth over time and is completely tax-free.
Read more to understand its benefits, interest rates and tax perks in a simple way.
What is PPF and Considered a Smart Choice?
Public Provident Fund (PPF) is a secure, long-term investment backed by the government. The meaning of PPF lies in its role as a tax-free, risk-free savings option with guaranteed returns. It offers tax benefits under Section 80C, making it ideal for stable wealth growth. With a 15-year lock-in period, it promotes disciplined savings, while partial withdrawals and loan options add flexibility. Whether for retirement or future goals, PPF remains a trusted choice for investors seeking safety, steady returns, and tax efficiency in their financial portfolio.
What are the Key Features of PPF Account?
The government backs Public Provident Fund in India, making it a trusted choice for cautious investors:
Tenure: Minimum 15 years, extendable in 5 year blocks
Investment limits: ₹500 to ₹1.5 lakh annually
Opening balance: Open with ₹100, max. ₹1.5 lakh
Deposit frequency: Minimum 1 deposit yearly for 15 years
Mode of deposit: Cash, cheque, demand draft or online transfer
Nomination: Assign a nominee during or after account opening
Joint accounts: Only individual accounts are allowed and not joint accounts
Risk factor: Government-backed, risk-free, with guaranteed returns
Tax benefit: Interest and maturity amounts are tax-exempt under PPF benefits
Partial withdrawal: Allowed from the 5th financial year onward.
Eligibility Criteria for PPF Account
After knowing about what is PPF, if you want to start a PPF account, you must meet the following requirements:
Only Indian citizens can open a PPF account
Each person can have only 1 account
Second account is allowed only for a minor
NRIs cannot open new accounts but existing ones remain active
NRIs cannot extend their PPF accounts after maturity
HUFs (Hindu Undivided Families) are not eligible for PPF
How Does a PPF Account Work?
It is easy to open a PPF account and you can do it easily at any financial institution. You can add money to it at any time of the year to keep it current, enjoying all the PPF benefits. Here’s how a PPF account works:
Deposits: You can deposit ₹500 to ₹1.5 lakh every financial year. Deposit by cash, check, demand draft or internet transfer. You can deposit 12 times annually.
Interest calculation: To calculate interest on a PPF account, add it up annually after the fiscal year. The lowest sum from the 5th until the end of the month defines the balance.
Partial withdrawals: Withdraw up to 50% of the amount at the end of the 4th year (or prior year), commencing with the 6th financial year. Once a year, you can withdraw money from the PPF account.
Maturity: After 15 years, a PPF account owner can withdraw the principal and interest. With or without donations, you can keep the account active for 5 years following maturity.
How to Open a PPF Account?
You can open a PPF account in both offline and online ways. To open the account, follow the below listed easy steps:
Steps to Open a PPF Account Offline:
Visit a post office or any authorised bank near you, like the State Bank of India or ICICI Bank
Fill out the account opening form
Submit a few documents like proof of identity (Aadhaar, voter ID) and a picture mainly a passport size
Deposit your 1st instalment to activate your account
Steps to Open a PPF Account Online:
Use your bank’s online or mobile banking app to log in
Click on ‘Open PPF Account’
Fill out all the required information and submit it
You will get an OTP on the registered phone number to confirm
Make the 1st transaction and activate your PPF account
Loan and Withdrawal Against PPF
You can take a loan after 1 year.
You can borrow up to 25% of your balance.
A second loan is allowed after repaying the first one.
The interest is 1% for up to 36 months.
If the loan exceeds 36 months, the interest increases to 6%.
PPF and Tax Benefit
The Public Provident Fund (PPF) offers great tax benefits while helping you save for the future. Under Section 80C of the Income Tax Act, you can claim a deduction of up to ₹1.5 lakh per financial year on your PPF contributions. This reduces your taxable income, helping you save on taxes.
Additionally, PPF falls under the EEE (Exempt-Exempt-Exempt) category, meaning the:
Full form of PPF, the Public Provident Fund, remains a top investment choice for long-term financial security in India. For your first investment in PPF, it offers guaranteed profits, no taxes, and high levels of protection.
If you desire consistent growth or avoid risk, invest in the PPF. Need extra funds while your PPF grows? Get Fibe Instant Cash of up to ₹5 lakhs in minutes directly to your bank account. Enjoy 100% digital application process and flexible repayment options.
FAQs
What is the best age to start a PPF investment?
When you are a young adult, especially in your 20s, it is the best time to make an investment in PPF for the most growth.
Can I change the PPF account nomination?
You can change the selection anytime by sending a letter to the post office or bank.
How do you convert a minor PPF account to a major?
To change the account, the child must show proof of age to the bank or post office when they turn 18.
When to deposit money in a PPF account?
You can put money in at any time during the financial year, but you should do it early for the best interest.
FASTag is a prepaid tag that makes toll payments quick and hassle-free. It’s linked to your car, so you don’t need cash at toll plazas, helping you travel faster. But to keep things smooth, make sure to check and maintain your FASTag balance regularly.
Read on to know the steps for a FASTag balance check online, learn about the usage of a mobile app and more.
Ways to Check FASTag Balance and Status
Wondering how to check my FASTag balanceand status? Listed below are a few ways:
1. FASTag Balance Check Online
You can easily check your FASTag balance online. Here’s how:
Go to your FASTag provider’s website or log in to their portal
Enter your registered mobile number or user ID
Find the balance section to see how much you have left
Check recent transactions to track deductions
2. Using the FASTag Mobile App
Managing your FASTag is super easy with apps from banks like HDFC, ICICI, and Paytm. Just follow these steps:
Download your FASTag provider’s official app (like Paytm FASTag or ICICI FASTag)
Log in using your registered mobile number
Go to the FASTag section to check your balance and account details
You can also see your FASTag status and recent toll deductions right in the app.
3. FASTag Balance Check via SMS
You can check your FASTag balance through SMS if your FASTag is linked to a bank that provides SMS alerts.Whenever you pass a toll plaza, you’ll get an SMS with details like the toll amount deducted and your remaining balance.
Most banks send automated SMS alerts, so you don’t need to send a request. However, if you want to check manually, some banks allow SMS-based inquiries.
Here are a few examples:
HDFC Bank: Send “ETCBAL <Vehicle Number>” to the bank’s FASTag service number
ICICI Bank: Send “ITOLLBAL <Vehicle Number>” to 8010928888
SBI FASTag: Send “BAL <Vehicle Number>” to 7208820019
Since formats may vary by provider, it’s best to check your FASTag issuer’s website or customer support for exact details.
4. FASTag Balance Check Using Customer Care
You can check your FASTag balance by calling your issuer’s customer care number from your registered mobile number. Here’s a quick list:
Issuing Bank
Customer Care Number
HDFC Bank
1800-120-1243
ICICI Bank
1800-210-0104
Axis Bank
1800-419-8585
SBI
1800-11-0018
Paytm Payments Bank
1800-102-6480
Kotak Mahindra Bank
1800-419-6606
Alternatively, give a missed call to +91-8884333331 (NHAI FASTag) to get your balance via SMS.
5. Checking FASTag Status Online
Check FASTag status: To ensure your FASTag is active, check its status on your provider’s portal or app.
Log in to your FASTag account and navigate to the ‘Status’ section
Check for the status as energetic, inactive or blacklisted
Recharge your FASTag to reactivate if shown as inactive
Recharging your FASTag is crucial to avoid blacklisting. Ensure your account always has sufficient funds to prevent delays at toll plazas.
Here’s how you can do it:
Via UPI: Use any UPI app to transfer funds to your FASTag wallet
Use the Mobile App: Log in to your provider’s app. Then, add money to your FASTag wallet. You can use net banking, credit/debit cards or UPI
Online Banking: Many banks allow direct FASTag wallet recharges via their web banking
Benefits of Checking FASTag Balance Regularly
Avoid Penalties: Ensure you have enough balance to avoid blacklisting
Monitor Deductions: Stay updated on toll charges and avoid unauthorised deductions
Seamless Travel: A well-maintained balance ensures uninterrupted travel
Common Issues and Troubleshooting
1. Blacklisted FASTag
If your FASTag is blacklisted for low balance or other reasons, recharge your wallet ASAP. For bank-issued FASTags, you may need to contact customer care for assistance.
2. Incorrect Deductions
If you see incorrect toll deductions, report them to your FASTag provider. Include the transaction ID and the toll plaza location.
3. Account Not Reflecting Recharge
Recharges take time to reflect in your account. Check your payment method. If the delay continues, contact customer care.
Conclusion
Check your FASTag balance often to ensure smooth travel and avoid issues at toll plazas. Use online portals, mobile apps, or SMS alerts to stay updated on your balance and account status. Recharging your FASTag is easy with UPI and mobile apps.
Need instant cash for unexpected expenses? Get up to ₹5 lakhs in minutes with Fibe, featuring flexible repayment options. Download the Fibe Personal Loan App today!
FAQs on FASTag Balance and Status Check
1. Is it possible to transfer the FASTag if I change my vehicle?
No, FASTag is automobile-precise and cannot be transferred to another vehicle. If you change your car, you must use a brand new FASTag for the new one. The existing FASTag may be closed or deactivated by contacting your FASTag service provider.
2. Should the FASTag account holder and the vehicle owner be the same person?
Not always. The FASTag account holder may be different from the vehicle owner. The car’s registration details should match the records from the FASTag process. This will avoid discrepancies.
3. Is there a difference in tolls if I pay with FASTag instead of cash?
FASTag tolls often have discounts or lower fees than cash. Also, FASTag payments save time by eliminating the need to stop and pay at toll plazas.
4. Where can I buy FASTag?
You can buy FASTag from banks, Amazon, Paytm, or toll plazas. You can apply for FASTag on the websites or at the branches of major banks, including HDFC, ICICI, and SBI.
