The objective of setting up of small finance banks, like the payments banks, is also to further financial inclusion; however, it is sought to be achieved through a different set of strategies viz., (i) provision of savings vehicles primarily to unserved and underserved sections of the population, and (ii) supply of credit to small business units; small and marginal farmers; micro and small industries; and other unorganised sector entities,  BIS central bankers’ speeches  9  through high technology-low cost operations.
The small finance bank, in furtherance of the objectives for which it will be set up, shall primarily undertake basic banking activities of acceptance of deposits and lending to unserved and underserved sections including small business units, small and marginal farmers, micro and small industries and unorganised sector entities.