Which of the following statements about microfinance is incorrect?

Correct option is A

The incorrect statement about microfinance is (a) Microfinance Institutions (MFIs) are banks that provide microfinancial services.
Microfinance refers to the financial services provided to low-income individuals or those who do not have access to typical banking services. These services include microloans, savings accounts, insurance, and other financial products that help improve the financial stability of clients typically excluded from the formal financial system.
This statement is incorrect because it suggests that all MFIs are banks, which is not true. MFIs can be banks, but they can also be NBFIs, cooperatives, NGOs, or other types of organizations. The term "banks" is too narrow to describe all MFIs.