UPSC Previous Year Question | Prelims GS | 2017

What is the purpose of setting up of Small Finance Banks (SFBs) in India? 1. To supply credit to small business units 2. To supply credit to small and marginal farmers 3. To encourage young entrepreneurs to set up business particularly in rural areas Select the correct answer using the code given below:

  1. 1 and 2 only
  2. 2 and 3 only
  3. 1 and 3 only
  4. 1, 2 and 3

Answer

Correct Answer

1, 2 and 3

Explanation

Small Finance Banks were set up by RBI to extend credit to underserved segments including small business units, small/marginal farmers, and to promote rural entrepreneurship — all three objectives (1, 2, 3) are valid.

Topics: banking and financial institutions, economy, sfb objectives, small finance banks