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Distinguish between Organized sector and Unorganized sector of the money market. - Economics

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Question

Distinguish between Organized sector and Unorganized sector of the money market.

Distinguish Between

Solution

Organized sector of the money market Unorganized sector of the money market

The organized sector includes:

  1. Reserve Bank of India (RBI)
  2. Commercial banks
  3. Co-operative banks
  4. Development of financial institutions
  5. Discount and Finance House of India

The unorganized sector includes:

  1. Money lenders
  2. Indigenous bankers
  3. Unregulated non-bank financial
This sector comes under the purview of RBI. This sector does not come under the control of RBI.
The interest rates are low and borrowers are not exploited. The interest rates are very high and borrowers are exploited.
It mainly operates in urban, semi-urban, and certain rural areas. It mainly operates in rural areas or remote regions where the organized sector is not developed.
shaalaa.com
Structure of Money Market in India - Unorganized Sector
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Chapter 9: Money Market and Capital Market in India - Exercise [Page 92]

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Balbharati Economics [English] 12 Standard HSC
Chapter 9 Money Market and Capital Market in India
Exercise | Q 6. (3) | Page 92
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