Explanation:

- Small Finance Banks are financial institutions in India that provide financial services to underserved populations.

- The Reserve Bank of India (RBI) licenses these banks with a focus on expanding access to financial services.

- As of October 2023, India has 12 operational Small Finance Banks.

- These banks aim to increase rural and semi-urban areas' access to financial services.

Options provided:

- Option 1: 11 - This is incorrect; India has more.

- Option 2: 12 - This is correct.

- Option 3: 13 - India does not have this many Small Finance Banks.

- Option 4: 10 - Lower than the actual count.

- Option 5: 9 - Significantly lower than the actual count.