@Harleen Small Finance banks primary objective is to promote financial inclusion in the country. The main objectives include: Offering Basic banking activities like accepting deposits. Lending low cost credit to small business units, unorganised sector, farmers and micro and small industries. However, a Small Finance Bank cannot extend larger amount of loans. In fact, SFBs have to face challenges to compete with public sector banks. Overall, Small Finance banks are a good initiative to further strengthen the credit arena.