Question

Why formal sector of credit is better then formal sector of credit give three reason

Answer 1

Formal sector is better than informal sector because:
1) low rate of interest is charged in the formal sector whereas the informal sector charge high rate of interest.
2) The functioning of the formal sector is supervised by reserve bank of India. there is no organisation to supervise the functioning of informal sector.
3) formal sector is more systematic in functioning as compared to informal sector.

Answer 2

Your question is incorrect you have written formal on both sentences but i have written the answer