Question

The credit activities of the informal sectors should be discouraged support the statement and mention a few steps taken by RBI in recent past in the regard

Answer 1

what is RBI Idont known . so search in google. stupid......

Answer 2

The credit activities of the informal sector should be discouraged because:

(i) 85% of loans taken by the poor households in the urban areas are from informal sources.

(ii) Informal lenders charge very high interest on their loans.

(iii) They try to charge more and more interest on their loans.

(iv) There are no boundaries and restrictions.

(v) Higher cost of borrowing means a larger part of the earnings of the borrowers is used to repay the loan.

Mark as brain list answer