Question

Why We Need To Expand Formal Sector Of Credit ?​

Answer 1

We need to expand formal sector of Credit because We need to expand the formal sector 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.

Answer 2

Here Is Your Ans

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We Need To Expand Formal Sector of Credit Because :-

# It decreases The Creating done By Informal Sector of credit

# it has fixed collateral

# it has low interest rate

# it abolish Dept trap

# it helps in developing the country

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$<marquee > hope it helps u$