2. Describe briefly the credit arrangements in the villages of India and their impact on daily life of the villagers in
the long and short term.
A. Moneylenders
B.rural banks
C.landowner employers
Answers
Answer:
These are as follows: i) Formal Sector- It includes banks and cooperatives that extend loans to households for entrepreneurship and other personal needs. The rates of interest charged by them are low. ii) Informal Sector- It includes moneylenders, traders, employers, relatives and friends.
Answer:
moneylenders : A moneylender is a person or group who typically offers small personal loans at high rates of interest. The high interest rates charged by them is justified in many cases by the risk involved.
Regional Rural Banks (RRBs) are Indian Scheduled Commercial Banks (Government Banks) operating at regional level in different States of India. They have been created with a view of serving primarily the rural areas of India with basic banking and financial services.
A landowner is a person who owns land, especially a large amount of land.