First we need to create separate group for the users who will be able to use only sftp service.
# sudo groupadd sftpgroup
After that we can create as much users as we need by using the command:
#sudo useradd -g sftponly -s /bin/false -m -d /home/username username
#sudo passwd username
# sudo usermod -G sftpgroup -s /bin/false username
# sudo chown root: /home/sftpgroup
# sudo chmod 755 /home/sftpgroup
# sudo vim /etc/ssh/sshd_config
Match group sftpgroup
ForceCommand internal-sftp
PasswordAuthentication yes
ChrootDirectory %h
PermitTunnel no
AllowAgentForwarding no
AllowTcpForwarding noX11Dorwarding no
ForceCommand internal-sftp
# ssudo systemctl restart ssh