What is the purpose of setting up of Small Finance Banks (SFBs) in India ?
- To supply credit to small business units
- To supply credit to small and marginal farmers
- To encourage young entrepreneurs to set up business particularly in rural areas.
Select the correct answer using the code given below:
1 and 2 only
2 and 3 only
1 and 3 only
1, 2 and 3
Answer is Right!
Answer is Wrong!
This question was previously asked in
UPSC IAS – 2017
Small Finance Banks (SFBs) are a category of banks introduced by the Reserve Bank of India (RBI) with the primary objective of furthering financial inclusion by providing access to financial services to unserved and underserved sections of the society. The target segments for SFBs specifically include small business units, small and marginal farmers, micro and small industries, and entities in the unorganized sector. Statement 1 and Statement 2 directly align with these objectives. Statement 3, while potentially a positive outcome, is not listed as a core or explicit purpose of setting up SFBs compared to the focus on specific segments like small businesses and farmers.