Consider the following statements:
1. Individuals with 10 years of banking experience can promote small finance banks.
2. Small finance banks can only operate in rural areas.
3. NBFCs can convert into small finance banks if eligible.

How many of the above statements are correct?
(a) Only one
(b) Only two
(c) All three
(d) None

Question

Consider the following statements:
1. Individuals with 10 years of banking experience can promote small finance banks.
2. Small finance banks can only operate in rural areas.
3. NBFCs can convert into small finance banks if eligible.

How many of the above statements are correct?
(a) Only one
(b) Only two
(c) All three
(d) None

ONLiNE UPSC · Accepted Answer

Statement 1 is correct : Resident individuals/professionals with 10 years of experience in banking and finance are eligible to promote small finance banks.

Statement 2 is not correct : There is no restriction on the area of operations of small finance banks, meaning they can operate in both rural and urban areas.

Statement 3 is correct : Existing NBFCs can opt for conversion into small finance banks if they meet the eligibility criteria.

Banking and Finance

Small Finance Banks

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M Question 1	⏱ 0
Consider the following statements: 1. Individuals with 10 years of banking experience can promote small finance banks. 2. Small finance banks can only operate in rural areas. 3. NBFCs can convert into small finance banks if eligible. How many of the above statements are correct? (a) Only one (b) Only two (c) All three (d) None