Question

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

Answer 1

Answer:

The supervision of functioning of formal loans necessary as:

1. To check whether credit is not only provided to large businesses but also to poor people and small traders etc

2. To check whether a minimum cash balance is maintained with the bank for the depositors on demand

3. To check whether credit is provided on reasonable interest or not.

Hope it helps

Answer 2

Answer:

The supervision of functioning of formal loans necessary

1. To check whether credit is not only provided to large businesses but also to poor people and small traders etc