Current Affairs Exam  >  Current Affairs Questions  >  Consider the following statements regarding S... Start Learning for Free
Consider the following statements regarding Small Finance Bank (SFB):
1. It is registered as a Public Limited Company under the Companies Act, 2013.
2. It is mandated to extend 75% of its adjusted net bank credit to the Priority Sector Lending (PSL).
3. SFBs are governed only by the provisions of the Banking Regulation Act, 1949.
Which of the statements given above is/are correct?
  • a)
    1 and 2 only
  • b)
    2 only
  • c)
    2 and 3 only
  • d)
    1, 2 and 3
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
Consider the following statements regarding Small Finance Bank (SFB):1...
  • Small Finance Banks (SFBs) are the financial institutions which provide financial services to the unserved and unbanked region of the country.
    • SFB is registered as a public limited company under the Companies Act, 2013. Hence, statement 1 is correct.
    • It needs to open at least 25% of its banking outlets in unbanked rural centres.
  • SFBs are required to extend 75% of its adjusted net bank credit to the Priority Sector Lending (PSL).
    • The RBI mandates banks to lend a certain portion of their funds to specified sectors, like agriculture, Micro, Small and Medium Enterprises (MSMEs), export credit, education, housing, social infrastructure, renewable energy among others. Hence, statement 2 is correct.
  • SFBs are governed by the provisions of the:
    • Reserve Bank of India Act, 1934;
    • Banking Regulation Act, 1949;
    • Foreign Exchange Management Act, 1999;
    • Payment and Settlement Systems Act, 2007;
    • Credit Information Companies (Regulation) Act, 2005;
    • Deposit Insurance and Credit Guarantee Corporation Act, 1961;
    • Other relevant Statutes and the Directives issued by the Reserve Bank of India (RBI) and other regulators from time to time.
    • Hence, statement 3 is not correct.
View all questions of this test
Most Upvoted Answer
Consider the following statements regarding Small Finance Bank (SFB):1...

Explanation:

1. Registration as a Public Limited Company:
- The first statement is correct. Small Finance Banks (SFBs) are registered as Public Limited Companies under the Companies Act, 2013. This allows them to operate as banking institutions while following the regulations and guidelines set by the Companies Act.

2. Mandate to extend credit to Priority Sector Lending:
- The second statement is also correct. SFBs are mandated to extend 75% of their adjusted net bank credit to Priority Sector Lending (PSL). This requirement ensures that SFBs contribute to the development of the priority sectors identified by the Reserve Bank of India.

3. Governance under Banking Regulation Act, 1949:
- The third statement is incorrect. While SFBs are primarily governed by the provisions of the Banking Regulation Act, 1949, they are also subject to other regulations and guidelines issued by the Reserve Bank of India. These additional regulations ensure that SFBs operate in a manner that is consistent with the broader goals of financial inclusion and stability.

Therefore, the correct answer is option 'A' as statements 1 and 2 are accurate regarding Small Finance Banks.
Explore Courses for Current Affairs exam

Similar Current Affairs Doubts

Top Courses for Current Affairs

Consider the following statements regarding Small Finance Bank (SFB):1. It is registered as a Public Limited Company under the Companies Act, 2013.2. It is mandated to extend 75% of its adjusted net bank credit to the Priority Sector Lending (PSL).3. SFBs are governed only by the provisions of the Banking Regulation Act, 1949.Which of the statements given above is/are correct?a)1 and 2 onlyb)2 onlyc)2 and 3 onlyd)1, 2 and 3Correct answer is option 'A'. Can you explain this answer?
Question Description
Consider the following statements regarding Small Finance Bank (SFB):1. It is registered as a Public Limited Company under the Companies Act, 2013.2. It is mandated to extend 75% of its adjusted net bank credit to the Priority Sector Lending (PSL).3. SFBs are governed only by the provisions of the Banking Regulation Act, 1949.Which of the statements given above is/are correct?a)1 and 2 onlyb)2 onlyc)2 and 3 onlyd)1, 2 and 3Correct answer is option 'A'. Can you explain this answer? for Current Affairs 2024 is part of Current Affairs preparation. The Question and answers have been prepared according to the Current Affairs exam syllabus. Information about Consider the following statements regarding Small Finance Bank (SFB):1. It is registered as a Public Limited Company under the Companies Act, 2013.2. It is mandated to extend 75% of its adjusted net bank credit to the Priority Sector Lending (PSL).3. SFBs are governed only by the provisions of the Banking Regulation Act, 1949.Which of the statements given above is/are correct?a)1 and 2 onlyb)2 onlyc)2 and 3 onlyd)1, 2 and 3Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for Current Affairs 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements regarding Small Finance Bank (SFB):1. It is registered as a Public Limited Company under the Companies Act, 2013.2. It is mandated to extend 75% of its adjusted net bank credit to the Priority Sector Lending (PSL).3. SFBs are governed only by the provisions of the Banking Regulation Act, 1949.Which of the statements given above is/are correct?a)1 and 2 onlyb)2 onlyc)2 and 3 onlyd)1, 2 and 3Correct answer is option 'A'. Can you explain this answer?.
Solutions for Consider the following statements regarding Small Finance Bank (SFB):1. It is registered as a Public Limited Company under the Companies Act, 2013.2. It is mandated to extend 75% of its adjusted net bank credit to the Priority Sector Lending (PSL).3. SFBs are governed only by the provisions of the Banking Regulation Act, 1949.Which of the statements given above is/are correct?a)1 and 2 onlyb)2 onlyc)2 and 3 onlyd)1, 2 and 3Correct answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for Current Affairs. Download more important topics, notes, lectures and mock test series for Current Affairs Exam by signing up for free.
Here you can find the meaning of Consider the following statements regarding Small Finance Bank (SFB):1. It is registered as a Public Limited Company under the Companies Act, 2013.2. It is mandated to extend 75% of its adjusted net bank credit to the Priority Sector Lending (PSL).3. SFBs are governed only by the provisions of the Banking Regulation Act, 1949.Which of the statements given above is/are correct?a)1 and 2 onlyb)2 onlyc)2 and 3 onlyd)1, 2 and 3Correct answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Consider the following statements regarding Small Finance Bank (SFB):1. It is registered as a Public Limited Company under the Companies Act, 2013.2. It is mandated to extend 75% of its adjusted net bank credit to the Priority Sector Lending (PSL).3. SFBs are governed only by the provisions of the Banking Regulation Act, 1949.Which of the statements given above is/are correct?a)1 and 2 onlyb)2 onlyc)2 and 3 onlyd)1, 2 and 3Correct answer is option 'A'. Can you explain this answer?, a detailed solution for Consider the following statements regarding Small Finance Bank (SFB):1. It is registered as a Public Limited Company under the Companies Act, 2013.2. It is mandated to extend 75% of its adjusted net bank credit to the Priority Sector Lending (PSL).3. SFBs are governed only by the provisions of the Banking Regulation Act, 1949.Which of the statements given above is/are correct?a)1 and 2 onlyb)2 onlyc)2 and 3 onlyd)1, 2 and 3Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of Consider the following statements regarding Small Finance Bank (SFB):1. It is registered as a Public Limited Company under the Companies Act, 2013.2. It is mandated to extend 75% of its adjusted net bank credit to the Priority Sector Lending (PSL).3. SFBs are governed only by the provisions of the Banking Regulation Act, 1949.Which of the statements given above is/are correct?a)1 and 2 onlyb)2 onlyc)2 and 3 onlyd)1, 2 and 3Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Consider the following statements regarding Small Finance Bank (SFB):1. It is registered as a Public Limited Company under the Companies Act, 2013.2. It is mandated to extend 75% of its adjusted net bank credit to the Priority Sector Lending (PSL).3. SFBs are governed only by the provisions of the Banking Regulation Act, 1949.Which of the statements given above is/are correct?a)1 and 2 onlyb)2 onlyc)2 and 3 onlyd)1, 2 and 3Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice Current Affairs tests.
Explore Courses for Current Affairs exam

Top Courses for Current Affairs

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev