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प्रश्न
"The credit activities of the informal sector should be discouraged." Support the statement with arguments.
उत्तर
The credit activities of informal sector should be discouraged due to the following reasons.
1. The credit activities of lenders of informal sector are not supervised by any organisation.
2. Informal lenders provide loans to borrowers at exorbitant rates of interest and traps them in a debt-trap.
3. Moneylenders and landlords keep illiterate farmers in the dark and extract more than the amount given on loan.
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संबंधित प्रश्न
How do banks play an important role in the economy of India? Explain.
Why are most of the poor households deprived from the formal sector of loans?
Look at a 10 rupee note. What is written on top? Can you explain this statement?
In what ways does the Reserve Bank of India supervise the functioning of banks? Why is this necessary?
__________issues currency notes on behalf of the Central Government.
Banks Charge a Higher Interest Rate on Loans than What They Offer on __________.
Explain the reason for the necessity of supervision by the Reserve Bank of India of formal sources of loans.
Explain any three loan activities of banks in India.
