Long answer question :- Why should …
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Yogita Ingle 5 years, 4 months ago
We need to expand formal sources of credit in india because:-
(1) There is no organisation which supervises the credit activities of lenders in the informal sector.
(2) There is no one to stop them from using unfair means to get their money back.
(3) Formal sources of credit are less risky and they charge less rate of interest .
(4) The RBI supervises the functioning of formal sourcesif loans.
1Thank You