The Reserve Bank of India (RBI) recently announced the final guidelines for on-tap licensing of private sector SFBs (small finance banks).Small Finance Banks (SFBs) offer basic banking services.These include accepting deposits and lending to un-served and underserved sections.It offers for small businesses, small and marginal farmers, micro and small industries, and the unorganized sector.Payments banks can apply for conversion into small finance banks (SFBs) after 5 years of operation, provided they meet the eligibility criteria.Recently data from the Reserve Bank of India (RBI) show that the small finance bank sector has been seeing remarkable growth in credit disbursement as well as deposits.Some of the operational Small Finance Banks in India are: Ujjivan SFB, Janalakshmi SFB, Equitas SFB, AU SFB, and Capital SFB.The small finance bank will primarily undertake basic banking activities of acceptance of deposits and lending to unserved and underserved sections including small business units, small and marginal farmers, micro and small industries and unorganised sector entities.It can also undertake other non-risk sharing simple financial services activities such as the distribution of mutual fund units, insurance products, pension products, etc. with the prior approval of the RBI.