I have removed all the sensitive permissions for the app.
In the Compliance status, I selected Yes, this release meets the SMS and Call Log permissions policy
In the Core functionality I selected SMS-based financial transactions and related activity where access is restricted to financial SMS transactions (for example, 5-digit messages)
and submitted the app to playstore.
After reviewing the build got rejected and got this response,
The declared functionality {Default SMS handler (and any other core functionality usage while default handler), Default Phone handler (and any other core functionality usage while default handler)} is determined to be unnecessary or not aligned with the core functionality of your app.
I am not using any of the sensitive permissions but still, the build got rejected.
As I am not using the permission for the core functionality, it is not allowing the save and rollout without selecting any core functionality.
So, How to proceed with this to get the build approved.