Question

give any two example and formal sector of credit

Answer 1

commercial banks and cooperative societies are the two example of formal sector of credit
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Answer 2

Credit is a contractual agreement in which the person who is borrowing money agrees to pay borrowed money with interest. Banks and collaborative societies are known as the formal sector of credit which requires collateral as the condition for lending money.

Landowners, moneylenders, merchants, relatives, associates all constitute the informal sector of credit. The credit exercises of the formal division are controlled by the Reserve Bank of India.