What is the purpose of setting up of Small Finance Banks (SFBs) in India? 1. To supply credit to small business units 2. To supply credit to small and marginal farmers 3. To encourage young entrepreneurs to set up business particularly in rural areas. Select the correct answer using the code given below:

Small Finance Banks (SFBs) were conceptualized by the Reserve Bank of India (RBI) with the primary objective of furthering financial inclusion by providing credit and other financial services to segments of the economy not served by other banks, such as small business units, small and marginal farmers, micro and small industries, and other unorganised sector entities.

1. To supply credit to small business units: This is a core objective of SFBs, catering to the credit needs of small enterprises.

2. To supply credit to small and marginal farmers: SFBs are mandated to extend credit to this underserved agricultural segment.

3. To encourage young entrepreneurs to set up business particularly in rural areas: By providing credit to small business units and facilitating financial inclusion, SFBs indirectly encourage entrepreneurship, especially in areas where formal credit might be scarce, which aligns with the broader goal of economic development and entrepreneurship in rural and semi-urban areas. Therefore, all three objectives are aligned with the purpose of SFBs.