Question

Which of the following statements are false? * a) There is no organisation which supervises the credit activities of lenders in the informal sector. b) RBI stops the money lenders from using unfair means to get their money back. c) Compared to the formal lenders, most of the informal lenders charges much lesser interest on loans d) Only (b) and (c)​

Answer 1

Answer:

There is no organization that supervises the credit activities of lenders in the informal sector. They lend at whatever interest rate they choose. ... Thus, it is necessary that banks and co-operatives increase their lending, particularly in rural areas, so that dependence on informal sources of credit ends.

Answer 2

Answer:

option c is correct

because RBI is a formal sector of providing loans so why RBI will interfere in informal sector of loans