Which of the following statements are incorrect regarding Small Finance Banks SFBs 1 The concept reg...........

Economic Affairs Types of Banks and Banking

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Which of the following statements are incorrect regarding Small Finance Banks(SFBs)?

1. The concept regarding these banks was firstly presented in 2011.

2. Urban cooperative banks can convert into SFBs.

Select the correct answer using the codes given below

1 Only

2 Only

Both 1 and 2

Neither 1 nor 2

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Explanation:

First option is correct.

The concept of small finance banks was one of the recommendations in the 2009 Report – A Hundred Small Steps – of the Committee on Financial Sector Reforms headed by Dr. Raghu Ram Rajan. In 2015, RBI decided to grant “in-principle” approval to 10 applicants to set up small finance banks under the Guidelines it issued in 2014.