In the context of Small Finance Banks (SFBs), consider the following statements:

SFBs in India offer basic banking services and credit to underserved populations.

They are regulated by the NABARD.

SFBs must follow all RBI prudential norms, including CRR and SLR requirements.

To transition into a universal bank, an SFB must have a satisfactory performance record for at least 15 years.

How many of the above statements are correct?

Question

[Correct] SFBs in India are banks designed to provide basic banking services and credit to underserved groups, such as small business owners, micro and small industries, farmers, and the unorganized sector.
[Incorrect] These banks are regulated by the RBI. Examples include Capital Small Finance Bank, Ujjivan, and Utkarsh.
[Correct] SFBs must comply with all RBI prudential norms, including CRR and SLR requirements, similar to commercial banks.
[Incorrect] Additionally, to transition into a universal bank, an SFB must demonstrate a satisfactory performance record for at least 5 years, as per RBI guidelines.

GKToday Admin · Accepted Answer

Only two

[Correct] SFBs in India are banks designed to provide basic banking services and credit to underserved groups, such as small business owners, micro and small industries, farmers, and the unorganized sector.
[Incorrect] These banks are regulated by the RBI. Examples include Capital Small Finance Bank, Ujjivan, and Utkarsh.
[Correct] SFBs must comply with all RBI prudential norms, including CRR and SLR requirements, similar to commercial banks.
[Incorrect] Additionally, to transition into a universal bank, an SFB must demonstrate a satisfactory performance record for at least 5 years, as per RBI guidelines.

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