Q. Consider the following statements about “Small Finance Banks” in India:
Which of the above given statements are correct?
Q. Consider the following statements about “Small Finance Banks” in India:
Which of the above given statements are correct?
The correct option is C
1 and 3 only
Explanation:
Statements 1 and 3 are correct: The Small Finance Bank (SFB) is a type of differentiated banks whose main purpose is to promote financial inclusion in the nation by primarily undertaking basic banking activities of acceptance of deposits and lending to un-served and underserved sections including small business units, small and marginal farmers, micro and small industries and unorganised sector entities, but without any restriction in the area of operations
Statement 2 is incorrect: To set up the SFBs, the minimum capital prescribed by the Reserve Bank of India is Rs. 100 crore with an initial contribution of 40% coming from the promoters, which over a period of 12 years, have to be reduced to 26%.
1 and 3 only
Explanation:
Statements 1 and 3 are correct: The Small Finance Bank (SFB) is a type of differentiated banks whose main purpose is to promote financial inclusion in the nation by primarily undertaking basic banking activities of acceptance of deposits and lending to un-served and underserved sections including small business units, small and marginal farmers, micro and small industries and unorganised sector entities, but without any restriction in the area of operations
Statement 2 is incorrect: To set up the SFBs, the minimum capital prescribed by the Reserve Bank of India is Rs. 100 crore with an initial contribution of 40% coming from the promoters, which over a period of 12 years, have to be reduced to 26%.
