ECONOMICS
CREDIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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No organisation
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Reserve bank of India
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State government
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Central government
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Detailed explanation-1: -Explanation: There is no organization that supervises the credit activities of lenders in the informal sector. They can lend at whatever interest rate they choose.
Detailed explanation-2: -The Reserve Bank of India supervises the credit activity of lenders in formal and informal sectors.
Detailed explanation-3: -Informal sector loans are the from informal lenders including moneylenders, traders, employers, relatives, and friends etc. Formal sector loans are supervised by the RBI and consists of loans from cooperatives and banks.
Detailed explanation-4: -The Reserve Bank of India is the central bank of India and controls all banking activities. It has the sole authority to print and circulate money in India. It regulates the banking functions of all the banks in India and plays an important role in foreign exchange.