Small finance banks: Rules & regulations

Q.  Which of the following statements is/ are correct about small finance bank?

1. They can lend to big corporates and groups
2. They Cannot open branches with prior RBI approval for first five years
- Published on 21 Sep 15

a. Only 1
b. Only 2
c. Both
d. None

ANSWER: Only 2
 
Small finance banks are a type of niche banks in India. Banks with a small finance bank license can provide basic banking service of acceptance of deposits and lending. Small finance banks can not lend to big corporates and groups.

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