UPSC CSE Prelims
Question 88
What is the purpose of setting up of Small Finance Banks (SFBs) in India ?
- To supply credit to small business units
- To supply credit to small and marginal farmers
- To encourage young entrepreneurs to set up business particularly in rural areas.
Select the correct answer using the code given below :
View correct answer and explanation
Correct answer: A
Correct Option: A
Explanation: Small Finance Banks were licensed to expand formal saving and credit access for underserved segments, especially small business units and small/marginal farmers. Rural entrepreneurship may benefit, but the stated separate young-entrepreneur goal is not a primary licensing objective.
Statement/Pair-wise Analysis:
Statement/Item 1: Correct - Credit to micro and small business units is a core SFB target segment.
Statement/Item 2: Correct - Small and marginal farmers are an expressly targeted underserved group.
Statement/Item 3: Incorrect - The programme is not specifically a scheme to encourage young rural entrepreneurs as a distinct stated object, although they may access finance.
Option-wise Analysis:
A: Correct - includes all and only the true statements/items.
B: Incorrect - includes incorrect statement/item 3; omits correct statement/item 1.
C: Incorrect - includes incorrect statement/item 3; omits correct statement/item 2.
D: Incorrect - includes incorrect statement/item 3.