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What is meant by small finance banks?

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:

  1. Types of Banks in India – Category and Functions of Banks in India
  2. RBI – Reserve Bank of India [UPSC Indian Economy Notes]

Related Links

Micro Finance – Definition, Features & Significance

Financial Inclusion – National Strategy for Financial Inclusion [UPSC GS-III]

SIDBI – Small Industries Development Bank of India & its Functions

Economics Mains Questions for UPSC GS-3

Topic-Wise GS 3 Questions for UPSC Mains

Types of Non Banking Financial Institutions India – Functions & Objectives

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