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 codes given below:

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CollectorBabu · Accepted Answer

Correct Answer: 1 and 2 only. ● Small finance banks can provide basic banking service of acceptance of deposits and lending. The aim of these banks is to provide financial inclusion to sections of the economy that are not being served by other banks, such as small business units, small and marginal farmers, micro and small industries and unorganised sector entities. ● To encourage young entrepreneurs to set up business particularly in rural areas is not among the objectives of Small Finance Banks. SFBs was recommended by the Nachiket Mor committee on financial inclusion.

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