What is RBI ? explain its functioning {5 MARKS}
What is the role of formal sector in countries development ? {5 MARKS}
Explain unequal distribution of formal sector loan ? {5 MARKS}
Explain self help group (SHG) briefly. {5 MARKS}
Explain EACH for 5 marks questions
Answers
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Reserve Bank of India (RBI) is the central bank of the country. RBI is a statutory body. It is responsible for the printing of currency notes and managing the supply of money in the Indian economy.
Initially, the ownership of almost all the share capital was in the hands of non-government shareholders. So in order to prevent the centralisation of the shares in few hands, the RBI was nationalised on January 1, 1949.
Functions of Reserve Bank
☛Issue of Notes
☛ Banker to the Government
☛Banker’s Bank
☛ Controller of the Credit
The evidence presented in this book shows that the informal sector is a significant component of the economy that provides employment, livelihoods and income for millions of workers and business owners. This relates to its employment potential as well as its role in inclusive growth and poverty reduction.
Markets may result in a very wide distribution of income or loan, such that some individuals may receive no income at all.
Incomes are earned in a market when individuals sell or hire out their factor of production to others.
Factor incomes include:
↪Wages
↪Rents
↪Interest
↪Profits
However, these incomes can vary considerably, and some individuals cannot earn even a moderate income. In a free market it may be difficult for some individuals to earn an income at all, leaving them unable to buy goods and services.
self-help group (SHG) is a financial intermediary committee usually composed of 10 to 20 local women or men between 18 to 40 years. Most self-help groups are in India, though SHGs can be found in other countries, especially in South Asia and Southeast Asia. SHG is nothing but a group of people who are on daily wages, they form a group and from that group one person collects the money and gives the money to the person who is in need.
Members also make small regular savings contributions over a few months until there is enough money in the group to begin lending. Funds may then be lent back to the members or to others in the village for any purpose. In India, many SHGs are 'linked' to banks for the delivery of micro-credit.
A SHG is a community based group with 10-20 members. They are usually women from similar social and economic backgrounds, all voluntarily coming together to save small sums of money, on a regular basis. They pool their resources to become financially stable, taking loans from their collective savings in times of emergency or financial scarcity, important life events or to purchase assets
Answer:
- RBI ( Reserve bank of india) the nation's centeral bank, began operations on April 01, 1935 it was established with the objective of ensuring monetary stability and operations the currency and credit system to its advantage. Its functions comprise monetary management foreign exchange and reserves
- Easy to fix accountability, No over lapping of work, unity of command possible, easy to get goals, stability in organism
- Self help group are the informal groups of people who come together to address their commom problems white self help might imply a focus on the individual, one important characteristics of self help groups is the idea of mutual support people helping each other