Q. Consider the following statements about the Small Finance Bank:
  1. It can undertake basic banking activities of accepting deposits and lending to small businesses
  2. Foreign Direct Investment is permitted in Small Finance Banks
Which of the above statements is/are correct?

Answer: Both 1 & 2
Notes: Both are correct statements
Small Finance Bank aims to provide a whole suite of basic banking products such as deposits and supply of credit mainly to small farmers, micro and small industries, and other unorganised sector entities through high technology-low cost operations.

This question is part of UPSC Daily 20 MCQ Series Course on GKToday Android app.