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UPSC 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:
(a)1 and 2 only
(b)2 and 3 only
(c)1 and 3 only
(d)1, 2 and 3
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Not attemptedCorrect Answer: (a) 1 and 2 only
RBI’s 2014 licensing guidelines state that Small Finance Banks aim to further financial inclusion by (i) providing savings vehicles and (ii) supplying credit to small business units, small and marginal farmers, micro-/small industries and other unorganised-sector entities. There is no mandate to ‘encourage young entrepreneurs’ per se, so statements 1 and 2 are correct while 3 is not; hence the answer is 1 and 2 only (a). ([rbi.org.in](https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=32614))
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What is the correct answer to this UPSC 2017 Indian Economy question?▼
The correct answer is option (a): 1 and 2 only. Watch the detailed video explanation in our Sherlocking Prelims course on UnlockIAS.
Which year was this Digital Payments & Financial Inclusion question asked in UPSC Prelims?▼
This question was asked in UPSC CSE Prelims 2017, GS Paper 1, as Question 40. It falls under Indian Economy > Digital Payments & Financial Inclusion.
What is the difficulty level of this UPSC question?▼
This question is rated "moderate". It requires sound conceptual understanding of the topic.
How many UPSC Prelims questions have been asked from Digital Payments & Financial Inclusion?▼
UPSC has asked 20 questions from Digital Payments & Financial Inclusion (under Indian Economy) across multiple years. Visit the topic page to see the full list and year-wise trends.