Question

Give 2 example of formal sector of credits

Answer 1

Landlords, moneylenders, traders, relatives, friends and other sources of credit constitute the informal sector of credit. The formal sector provides only marginally more credit than the informal sector currently. The credit activities of the formal sector are supervisedby the Reserve Bank of India

Answer 2

Formal and Informal Sectors of Credit in India. People can borrow money from different sources such as banks, cooperatives, money lenders, relatives and friends etc.  The loan obtained from money lenders, relatives and friends, etc. constitutes the 'informal sector' of credit.