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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:

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: Correct Answer 1 and 2 only

The correct answer is option 1 i.e 1 and 2 only.

  • As per the RBI guidelines:
    • The objectives of setting up of small finance banks will be to further financial inclusion by (a) provision of savings vehicles, and (ii) supply of credit to small business units; small and marginal farmers; micro and small industries; and other unorganised sector entities, through high technology-low cost operations. (Hence statement 1 and 2 is correct)
    • There is no explicit provision that SFBs have been setup to encourage setting of businesses in rural areas. (Hence statement 3 is incorrect)

Related Questions

Which of the following statements are true in context of scheduled banks?
1. All banks which are included in the Second Schedule to the Reserve Bank of India Act, 1934 are Scheduled Banks.
2. These banks comprise Scheduled Commercial Banks and Scheduled Co-operative Banks.
3. Scheduled Commercial Banks in India are categorized into five different groups - SBI, Nationalised Banks, Regional Rural Banks, Foreign Banks and Other Indian Scheduled Commercial Banks in the private sector.
4. Scheduled Co-operative Banks consist of Scheduled State Co-operative Banks and Scheduled Urban Co-operative Banks.
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Consider the following statements regarding Priority Sector Lending (PSL) 1. At present, all domestic scheduled commercial banks and all foreign banks are required to meet a target of 40 per cent of their Adjusted Net Bank Credit (ANBC) for Priority Sector Lending 2. Regional Rural Banks (RRBs) and Small Finance Banks (SFBs) are required to meet a target of 75 per cent towards PSL Which of the above statements is correct?
In the question below, is given a statement followed by three courses of actions numbered I, II and III. On the basis of the information given, you have to assume everything in the statement to be true, and then decide which of the suggested courses of action logically follow (s) for pursuing. Statement: The numbers are impressive. In its quest towards Swachh Bharat, the government has built 4.98 crore rural household latrines in the last three years. What's more, recent surveys by the NSSO and the Quality Council of India show that over 90% people with access to toilets are using them. Launched with the idea of Clean India, it is expanding from urban to the rural areas and is spreading awareness among the masses. Courses of action: I. Given that most rural areas in India lack proper drainage and a sewage network, the government has focused on building twin-pit toilets. But there is no data on whether the size of hastily built twin pits takes into account the number of users, and whether each pit is enough to collect waste for three years.  II. While this is a positive indicator, there are many other areas that need attention such as the shortage of water, sensitization of citizens, proper maintenance and usage of toilets, and overcoming the resistance to dry manure made from human waste.  III. One of the biggest challenges for Swachh Bharat in rural areas is managing liquid waste, which pollutes natural water bodies. Though the scheme covers this aspect as well, the immediate focus is to deal with open defecation.
Which of the following statements is true about life in rural India? A. About four-fifths of farmers in India are large farmers. B. Farmers in India get into a debt trap when do not expect yield. C. Small farmers depend mainly on banks for their credit requirements. Choose the correct option.
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Directions : In each of the following questions a statement is given, followed by two conclusions. Give answer :

Statements : The average number of persons per household is 5 in urban areas whereas it is 7 in rural areas. The national average is 6.

Conclusions :
I. The population per unit area in the rural areas is higher than in the urban areas.
II. More persons live in the same household in the rural areas as compared to those in the urban areas.
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With reference to 'Initiative for Nutritional Security through Intensive Millets Promotion, which of the following statements is/are correct? 1. This initiative aims to demonstrate the improved production and post-harvest technologies and to demonstrate value addition techniques, in an integrated manner, with a cluster approach. 2. Poor, small, marginal and tribal farmers have a larger stake in this scheme. 3. An important objective of the scheme is to encourage farmers of commercial crops to shift to millet cultivation by offering them free kits of critical inputs of nutrients and micro-irrigation equipment. Select the correct answer using the code given below.
An operating system uses the Banker’s algorithm for deadlock avoidance when managing the allocation of three resource types X, Y, and Z to three processes P0, P1, and P2. The table given below presents the current system state. Here, the Allocation matrix shows the current number of resources of each type allocated to each process and the Max matrix shows the maximum number of resources of each type required by each process during its execution.   Allocation Max   X Y Z X Y Z P0 0 0 1 8 4 3 P1 3 2 0 6 2 0 P2 2 1 1 3 3 3   There are 3 units of type X, 2 units of type Y and 2 units of type Z still available. The system is currently in a safe state. Consider the following independent requests for additional resources in the current state: REQ1: P0 requests 0 units of X, 0 units of Y and 2 units of Z REQ2: P1 requests 2 units of X, 0 units of Y and 0 units of Z Which one of the following is TRUE?