Introduction
Utkarsh Small Finance Bank has emerged as one of India’s fast-growing small finance institutions, offering a mix of modern banking and grassroots accessibility. Founded with the mission to drive financial inclusion, it caters especially to underserved communities across rural and semi-urban India. Whether you’re looking for a reliable savings account, competitive interest rates, or easy access to micro-loans, Utkarsh Small Finance Bank positions itself as a customer-first institution.
In this article, we’ll explore everything you need to know about Utkarsh Small Finance Bank—its origins, products, interest rates, customer benefits, and why it’s gaining traction in India’s evolving financial landscape.
What Is Utkarsh Small Finance Bank?
Utkarsh Small Finance Bank is an Indian small finance bank headquartered in Varanasi, Uttar Pradesh. It was incorporated in April 2016 and started its operations as a small finance bank in January 2017 after receiving approval from the Reserve Bank of India (RBI).
The bank was originally part of Utkarsh Micro Finance, which focused on lending to low-income groups. Since becoming a bank, Utkarsh has diversified its services to include personal banking, business banking, and digital financial solutions, all while maintaining its focus on inclusive growth.
Key Highlights of Utkarsh Small Finance Bank
Focus on Financial Inclusion
Utkarsh aims to serve unbanked and underbanked sections of society, particularly in rural and semi-urban areas. Its outreach model integrates traditional branches with mobile banking units, enabling deeper financial access.
Regulated by RBI
Being a licensed small finance bank, Utkarsh operates under the direct supervision of the Reserve Bank of India. This ensures compliance with national banking regulations, customer safety, and operational transparency.
Rapid Expansion
The bank has rapidly expanded to over 700 branches across multiple states in India, targeting both rural populations and small business owners. Its footprint spans across Bihar, Jharkhand, Madhya Pradesh, Maharashtra, and other key states.
Banking Services Offered by Utkarsh Small Finance Bank
Utkarsh offers a wide range of financial products tailored to meet the needs of individuals, small businesses, and farmers.
Savings Accounts
Utkarsh Small Finance Bank provides zero balance and premium savings account options. Customers benefit from competitive interest rates, free ATM withdrawals, and online banking facilities.
Features:
- Interest rates up to 7.50% (depending on account balance)
- Free RuPay Debit Card
- Mobile and internet banking access
Fixed Deposits (FDs)
Their FD schemes are popular due to high returns and flexible tenures.
Benefits:
- Interest rates up to 8.50% for senior citizens
- Tenure from 7 days to 10 years
- Monthly, quarterly, or cumulative interest payouts
Recurring Deposits (RDs)
RDS are suitable for salaried individuals or daily wage earners looking to build savings gradually.
Loans and Credit
The bank provides a variety of loans:
- Microfinance Loans for women and self-help groups
- Personal Loans for salaried and self-employed individuals
- Home Loans with competitive interest rates
- Vehicle Loans for two-wheelers and commercial vehicles
- Business Loans for MSMEs
All loan services are tailored to ensure affordability and ease of access.
Insurance and Investment Services
Utkarsh partners with reputed insurance and mutual fund providers to offer:
- Term Life Insurance
- Health Insurance
- Mutual Funds and SIPs
Digital Banking with Utkarsh
Utkarsh Small Finance Bank offers a robust digital platform, ensuring that customers can bank from anywhere.
Utkarsh Mobile Banking App
The mobile app offers:
- Fund transfers via NEFT, IMPS, RTGS
- Bill payments and recharges
- Mini statements and balance checks
- Online FD and RD creation
Internet Banking
A comprehensive portal for account management, statements, fund transfers, and loan EMIs.
The focus on secure and user-friendly digital banking helps even first-time users manage their finances with ease.
Why Choose Utkarsh Small Finance Bank?
Utkarsh Small Finance Bank isn’t just another banking institution—it offers unique value, especially to communities that mainstream banks often overlook.
Customer-Centric Approach
Their service model revolves around relationship-based banking, ensuring that customer concerns are addressed promptly and effectively.
Attractive Interest Rates
From savings to fixed deposits, Utkarsh often provides higher-than-average interest rates compared to larger commercial banks.
Community Development Initiatives
The bank runs financial literacy programs, women empowerment workshops, and livelihood promotion efforts across rural India.
Easy Access to Credit
Utkarsh simplifies credit access for people without formal income documents, helping them build creditworthiness over time.
Utkarsh Small Finance Bank Interest Rates (As of July 2025)
| Account Type | Interest Rate |
|---|---|
| Savings Account | 4.00% to 7.50% p.a. |
| Fixed Deposit | 7.25% (up to 8.50% for senior citizens) |
| Recurring Deposit | 7.00% to 8.00% p.a. |
| Home Loans | Starting from 9.25% p.a. |
| Personal Loans | Starting from 11.75% p.a. |
Note: Interest rates are subject to change. Please verify on Utkarsh Bank’s official website for the latest rates.
Customer Support and Branch Services
Utkarsh Small Finance Bank ensures seamless service across both digital and physical touchpoints.
Customer Care
- Toll-free number: 1800-123-9878
- Email support: [email protected]
- 24/7 support for ATM and card-related issues
Branch Network
You can visit any of the 700+ branches for:
- Cash deposit/withdrawal
- Passbook printing
- Loan consultation
- Account opening assistance
FAQs About Utkarsh Small Finance Bank
Is Utkarsh Small Finance Bank safe?
Yes. Utkarsh is regulated by the Reserve Bank of India and follows all mandatory banking norms, including maintaining capital adequacy and deposit insurance under DICGC.
What is the interest rate on Utkarsh savings accounts?
Interest rates vary from 4% to 7.50% per annum depending on the balance maintained.
How can I open an account in Utkarsh Small Finance Bank?
You can open an account by visiting a branch with KYC documents or apply online via the official website or mobile app.
Does Utkarsh offer internet banking?
Yes, the bank offers full-fledged internet banking services for both individuals and businesses.
What is the FD interest rate in Utkarsh Small Finance Bank?
FD interest rates range from 7.25% to 8.50% per annum, with higher rates available for senior citizens.
Utkarsh Small Finance Bank is more than just a bank—it’s a social mission with a financial arm. From attractive deposit schemes and inclusive loan products to tech-enabled banking services, it’s becoming a go-to choice for people seeking trustworthy and rewarding banking solutions in India.
Whether you’re a rural farmer needing a small loan, a salaried worker saving for the future, or a small business looking for capital, Utkarsh Small Finance Bank offers a modern yet accessible solution.
Ready to start your journey with Utkarsh?
Visit utkarsh.bank to explore their offerings or find your nearest branch today!
