Question

Why is there a need to expand formal sector of credit?

Answer 1

$\huge{Hey Mate!!!}$

☆☞ Here is ur answer ☜☆

✔✔ We need to expand the formal sources of credit because of the following reasons;)

✔✔ (1) Formal sources of credit are less risky and they charge less rate of interest .

✔✔ (2) The RBI supervises the functioning of formal sources if loans. It monitors the bank in actually maintain cash balance.

HOPE IT HELPS!

Answer 2

there is need to expand formal sector of credit by following:-
● to stop the exploitation against small farmers
against high rate on interesr
etc.
● to helps the small farmers and peoples to gain interest.