Question

Formal credit meet only about half of the total credit need of rural people where does the other half come from

Answer 1

We need to expand the formal sources of credit because of the following reasons;) (1) Formal sources of credit are less risky and they charge less rate of interest . (2) The RBI supervises the functioning of formal sourcesif loans. It monitors the bank in actually maintain cash balance

Answer 2

Answer:

We need to expand the formal sources of credit because of the following reasons;) (1) Formal sources of credit are less risky and they charge less rate of interest . (2) The RBI supervises the functioning of formal sourcesif loans. It monitors the bank in actually maintain cash balance