Question
The committee that recommended setting up Small Finance
Banks in India was headed by –Solution
 The Committee on Small Banks, headed by Usha Thorat, recommended setting up of the small finance banks in the country. The main objective is to achieve financial inclusion and also to extend credit to the rural unbanked areas of the country. The minimum capital requirement to set up such a bank is Rs 100 crores whereas for the first three years, at least 25% of the branches are required to be in the unbanked areas only. The promoter shareholding has been pegged at 40% minimum for the first five years of operation for such banks.Â
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