With reference to small finance banks in India, consider the following statements:

AU Small Finance Bank is the first small finance bank in India.

Small finance banks primarily focus on providing financial inclusion to underserved sections of society.

Small finance banks can accept deposits and provide loans, but cannot issue credit cards.

The Reserve Bank of India regulates small finance banks under the Banking Regulation Act, 1949.

How many of the above statements is/are correct?

Question

AU Small Finance Bank is the first small finance bank in India: This is incorrect. The first small finance bank in India was Capital Small Finance Bank, established in 2016.
Small finance banks primarily focus on providing financial inclusion to underserved sections of society: This is correct. They aim to serve the unbanked and underbanked populations.
Small finance banks can accept deposits and provide loans, but cannot issue credit cards: This is incorrect. Small finance banks can issue credit cards, subject to regulatory approvals.
The Reserve Bank of India regulates small finance banks under the Banking Regulation Act, 1949: This is correct. RBI oversees their operations and compliance.

Thus, two of the statements are correct. The correct answer is (B) Only two.

GKToday Admin · Accepted Answer

Only two

AU Small Finance Bank is the first small finance bank in India: This is incorrect. The first small finance bank in India was Capital Small Finance Bank, established in 2016.
Small finance banks primarily focus on providing financial inclusion to underserved sections of society: This is correct. They aim to serve the unbanked and underbanked populations.
Small finance banks can accept deposits and provide loans, but cannot issue credit cards: This is incorrect. Small finance banks can issue credit cards, subject to regulatory approvals.
The Reserve Bank of India regulates small finance banks under the Banking Regulation Act, 1949: This is correct. RBI oversees their operations and compliance.

Thus, two of the statements are correct. The correct answer is (B) Only two.

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