With reference to the Small Finance Banks (SFBs), consider the following statements: 1. They operate under the RBI’s Banking Regulation Act, 1949. 2. Minimum paid-up capital required to establish a SFB is ₹50 crore. 3. At least 75% of their Adjusted Net Bank Credit (ANBC) is allocated to priority sectors under RBI's guidelines. How many of the above statements are correct? |ForumIAS

Q. With reference to the Small Finance Banks (SFBs), consider the following statements:
1.They operate under the RBI’s Banking Regulation Act, 1949.
2.Minimum paid-up capital required to establish a SFB is ₹50 crore.
3.At least 75% of their Adjusted Net Bank Credit (ANBC) is allocated to priority sectors under RBI’s guidelines.
How many of the above statements are correct?

[A] Only one

[B] Only two

[C] All three

[D] None

Answer: A

Notes:

Explanation: Only Statement 1 is correct

Statement 1 is correct: Regulated by the RBI: Operate under the RBI’s Banking Regulation Act, 1949, and other relevant regulations.

Statement 2 is incorrect: Capital Requirements: Minimum paid-up capital is ₹200 crore, ensuring financial stability.

Statement 3 is incorrect: ocus on Priority Sectors: At least 60% (earlier 75%) of their Adjusted Net Bank Credit (ANBC) is allocated to priority sectors like agriculture and small-scale industries.

Source: Business Line

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