Banks which provide basic banking activities like taking deposits, lending to unorganized entities, micro and small industries, small and marginal farmers, and other underserved sections are known as small finance banks. With the aim of creating financial inclusion, it was created by the Reserve Bank of India. You can read about the Granting License for Small Finance Banks by the Reserve Bank of India (RBI) in the given link.
Further readings:
- Types of Banks in India – Category and Functions of Banks in India
- RBI – Reserve Bank of India [UPSC Indian Economy Notes]
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