{"id":91465,"date":"2025-06-01T10:57:11","date_gmt":"2025-06-01T10:57:11","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=91465"},"modified":"2025-06-01T10:57:11","modified_gmt":"2025-06-01T10:57:11","slug":"what-is-the-purpose-of-setting-up-of-small-finance-banks-sfbs-in-ind","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/what-is-the-purpose-of-setting-up-of-small-finance-banks-sfbs-in-ind\/","title":{"rendered":"What is the purpose of setting up of Small Finance Banks (SFBs) in Ind"},"content":{"rendered":"<p>What is the purpose of setting up of Small Finance Banks (SFBs) in India ?<\/p>\n<ul>\n<li>To supply credit to small business units<\/li>\n<li>To supply credit to small and marginal farmers<\/li>\n<li>To encourage young entrepreneurs to set up business particularly in rural areas.<\/li>\n<\/ul>\n<p>Select the correct answer using the code given below:<\/p>\n<p>[amp_mcq option1=&#8221;1 and 2 only&#8221; option2=&#8221;2 and 3 only&#8221; option3=&#8221;1 and 3 only&#8221; option4=&#8221;1, 2 and 3&#8243; correct=&#8221;option1&#8243;]<\/p>\n<div class=\"psc-box-pyq-exam-year-detail\">\n<div class=\"pyq-exam\">\n<div class=\"psc-heading\">This question was previously asked in<\/div>\n<div class=\"psc-title line-ellipsis\">UPSC IAS &#8211; 2017<\/div>\n<\/div>\n<div class=\"pyq-exam-psc-buttons\"><a href=\"\/pyq\/pyq-upsc-ias-2017.pdf\" target=\"_blank\" class=\"psc-pdf-button\" rel=\"noopener\">Download PDF<\/a><a href=\"\/pyq-upsc-ias-2017\" target=\"_blank\" class=\"psc-attempt-button\" rel=\"noopener\">Attempt Online<\/a><\/div>\n<\/div>\n<section id=\"pyq-correct-answer\">\nThe correct answer is A) 1 and 2 only.<br \/>\n<\/section>\n<section id=\"pyq-key-points\">\nSmall 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.<br \/>\n<\/section>\n<section id=\"pyq-additional-information\">\nSFBs are regulated by the RBI and are subject to prudential norms and regulations similar to scheduled commercial banks, with some specific adjustments to reflect their focus on small-scale lending. They are required to extend 75% of their Adjusted Net Bank Credit (ANBC) to the sectors categorized as priority sector lending by the RBI.<br \/>\n<\/section>\n","protected":false},"excerpt":{"rendered":"<p>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: [amp_mcq option1=&#8221;1 and 2 &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"What is the purpose of setting up of Small Finance Banks (SFBs) in Ind\" class=\"read-more button\" href=\"https:\/\/exam.pscnotes.com\/mcq\/what-is-the-purpose-of-setting-up-of-small-finance-banks-sfbs-in-ind\/#more-91465\">Detailed Solution<span class=\"screen-reader-text\">What is the purpose of setting up of Small Finance Banks (SFBs) in Ind<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1092],"tags":[1101,1120,1190],"class_list":["post-91465","post","type-post","status-publish","format-standard","hentry","category-upsc-ias","tag-1101","tag-economic-development","tag-money-banking","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What is the purpose of setting up of Small Finance Banks (SFBs) in Ind<\/title>\n<meta name=\"description\" content=\"The correct answer is A) 1 and 2 only. 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.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/what-is-the-purpose-of-setting-up-of-small-finance-banks-sfbs-in-ind\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What is the purpose of setting up of Small Finance Banks (SFBs) in Ind\" \/>\n<meta property=\"og:description\" content=\"The correct answer is A) 1 and 2 only. 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.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/what-is-the-purpose-of-setting-up-of-small-finance-banks-sfbs-in-ind\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-01T10:57:11+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"What is the purpose of setting up of Small Finance Banks (SFBs) in Ind","description":"The correct answer is A) 1 and 2 only. 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.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/what-is-the-purpose-of-setting-up-of-small-finance-banks-sfbs-in-ind\/","og_locale":"en_US","og_type":"article","og_title":"What is the purpose of setting up of Small Finance Banks (SFBs) in Ind","og_description":"The correct answer is A) 1 and 2 only. 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.","og_url":"https:\/\/exam.pscnotes.com\/mcq\/what-is-the-purpose-of-setting-up-of-small-finance-banks-sfbs-in-ind\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2025-06-01T10:57:11+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/what-is-the-purpose-of-setting-up-of-small-finance-banks-sfbs-in-ind\/","url":"https:\/\/exam.pscnotes.com\/mcq\/what-is-the-purpose-of-setting-up-of-small-finance-banks-sfbs-in-ind\/","name":"What is the purpose of setting up of Small Finance Banks (SFBs) in Ind","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2025-06-01T10:57:11+00:00","dateModified":"2025-06-01T10:57:11+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"description":"The correct answer is A) 1 and 2 only. 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.","breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/what-is-the-purpose-of-setting-up-of-small-finance-banks-sfbs-in-ind\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/what-is-the-purpose-of-setting-up-of-small-finance-banks-sfbs-in-ind\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/what-is-the-purpose-of-setting-up-of-small-finance-banks-sfbs-in-ind\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"UPSC IAS","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/upsc-ias\/"},{"@type":"ListItem","position":3,"name":"What is the purpose of setting up of Small Finance Banks (SFBs) in Ind"}]},{"@type":"WebSite","@id":"https:\/\/exam.pscnotes.com\/mcq\/#website","url":"https:\/\/exam.pscnotes.com\/mcq\/","name":"MCQ and Quiz for Exams","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/exam.pscnotes.com\/mcq\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209","name":"rawan239","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","caption":"rawan239"},"sameAs":["https:\/\/exam.pscnotes.com"],"url":"https:\/\/exam.pscnotes.com\/mcq\/author\/rawan239\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/91465","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/comments?post=91465"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/91465\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=91465"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=91465"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=91465"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}