Question

which one of the following is a formal source of credit​

Answer 1

Formal sources of credit are: Banks and Co-operative societies. Reserve bank of India will supervise the activities of the banks and co-operative societies in India. Employers do not fall under formal sources of credit lenders in our country.

Answer 2

The formal source of credit is:

Explanation:

• Commercial banks, regional rural banks, cooperative credit societies, and other formal credit sources exist.
• The Reserve Bank of India is in charge of overseeing the operation of formal loan sources.
• We've seen, for example, that banks keep a minimum cash balance from the deposits they receive.
• The RBI keeps track of whether banks are truly keeping their cash balances.
• Banks are required to report to the RBI on how much money they are lending to whom, at what interest rate, and so on on a regular basis.
• Formal credit is commonly accessible from banks and cooperatives.
• In comparison to informal institutions, they charge a lower rate of interest.
• The Reserve Bank of India (RBI) oversees the operation of formal loan sources.