Question

What is formal source of credit? Mention 5 features of it

Answer 1

Formal source of credit include bamks amd cooperatives which are supervised by country govt or monetary organ like RBI in india

*lower interest rate

.compared to informal sector, formal sources extend loans for lower interest rates

*supervision of RBI

.RBI looks onto whether the cash reserve ratio(CRR) of 15% is kept In the bank

.looks onto the interest rate of bank

.looks onto how much the bank gives loan and to whom all

.banks have to submit reports to the RBI