Economics · Banking Sector Regulations - Small Finance Banks
With reference to Small Finance Banks (SFBs) in India, consider the following statements: I. They are required to maintain a minimum Capital Adequacy Ratio (CAR) of 15 per cent on a continuous basis. II. At least half of their loan portfolio is required to consist of loans and advances of up to ₹25 lakh. III. They may seek transition into a Universal Bank after fulfilling the prescribed period of satisfactory operations and regulatory guidelines. Which of the statements given above are correct?
- 1I, II and III✓
- 2I and III only
- 3II and III only
- 4I and II only
Correct answer
I, II and III
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