Q. Which of the following statements is/are correct about the Small Finance Bank?

1. They are allowed to accept deposits from customers but not allowed to lend money
2. Airtel Small Finance Bank Ltd is India’s first small finance bank
3. Small finance banks need to maintain SLR and CRR
4. These are registered as a public limited company under the Companies Act, 2013

Select the correct option from codes given below:
Answer: 3 & 4 Only
Notes: First statement is incorrect because small finance banks are allowed to take deposits from customers as well as they are also allowed to lend money to people. Second statement is again incorrect because the Capital Small Finance Bank Ltd is the country’s first small finance bank opened in Jalandhar. It is first among the 10 entities that were given the in-principle approval by the Reserve Bank of India (RBI) to set up small finance banks. Third statement is correct. Small Finance Banks need to maintain CRR and SLR. Fourth statement is correct. Small finance banks are registered as a public limited company under the Companies Act, 2013.

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