In the context of Small Finance Banks SFB consider the following statements 1 They are required to e...........

Indian Economic System(CSC) Money and banking

In the context of Small Finance Banks (SFB), consider the following statements:

1. They are required to extend 75 percent of their Adjusted Net Bank Credit to the priority sectors.

2. They are subjected to the norms of Cash Reserve Ratio and Statutory Liquidity Ratio.

Which of the statements given above is/are correct?

1 only

2 only

Both 1 and 2

Neither 1 nor 2

Both 1 and 2.

Small Finance Banks (SFBs) are financial institutions that provide basic banking services to underserved and underprivileged communities in India.
They were introduced in 2015 to promote small businesses, micro and small enterprises, and unorganized sectors, while also strengthening financial inclusion.
SFBs are licensed by the Reserve Bank of India (RBI) and are registered as public limited companies under the Companies Act, 2013.