Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
Showing 2 terms
A licensed bank required to lend largely to small borrowers and underbanked segments, supervised as a bank.
It is a bank, so the deposit insurance is identical up to the same limit. It pays more because it lacks a large cheap deposit base and lends to a riskier segment — not because the statutory cover is different.
A bank included in the second schedule to the Reserve Bank of India Act, which gives it access to the central bank’s facilities and the clearing system.
What actually brings the prudential inspection and the deposit insurance is the banking licence, not the schedule. Small finance banks, payments banks and registered co-operative banks hold that licence; societies and nidhis do not, whatever the passbook looks like.