Question

Why is the supervision of the functioning of formal source of loans necessary ​

Answer 1

Supervision of formal sources of loans is necessary for the following reasons: 1) So that the targeted groups for whom specific loans have been designed can avail of such loans. ... 5) So that the Banks and other lending institutions have adequate resources to meet their lending objectives.

The supervision of the functioning of the formal sources of credit is necessary because the banks should not only provide loans to rich sections of society but also to poor people. Also, the banks should follow the right procedures of borrowing and lending money.

Answer 2

Answer:

The supervision of the functioning of the formal sources of credit is necessary because the banks should not only provide loans to rich sections of society but also to poor people. Also, the banks should follow the right procedures of borrowing and lending money.