Small finance bank - GS questions based on daily current affairs

1)   Which of the following statements is/ are correct about small finance bank?

1. Small finance banks can provide Loans and advances of up to Rs 25 lakhs, primarily to micro enterprises.
2.  As per the RBI rules, small finance bank have to manage a quarter of their branches in un-banked rural areas

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

ANSWER: Only 1

Explanation:
- Small finance bank does not have to manage a quarter of their branches in un-banked rural areas, they should have at least 25 per cent of their access points in such areas.
- 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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