Why do we need to expand formal sources of credit in India ? Give three reasons. -SST 10th

Why do we need to expand formal sources of credit in India ? Give three reasons. -SST 10th
by

1 Answer

Answer :

1. The formal sector i.e. the banks and the cooperatives need to engage more in the lending activities because of the disadvantages posed by the informal sector including high rates of interest and the unfair means that are involved in this process. 2. Borrowings at many cheap rates from the formal sector would encourage higher incomes which would, in turn, lead to an increase in the number of borrowings from the banks for various purposes.4 3. An increase in borrowings would help people in growing crops, do business, set up small-scale industries etc which would add to the development aspect of a country. Therefore, affordable credit is crucial for a country's development.
by

Related questions

Why do we need to expand formal sources of credit in India? Give three reasons. -SST 10th

Description : Why do we need to expand formal sources of credit in India? Give three reasons. -SST 10th

Last Answer : . The cost of informal loans is much higher and often leads to a debt trap. Also, people who might wish to start a new enterprise by borrowing may not do so because of the high cost ... important that the formal credit is distributed more equally so that the poor can benefit from the cheaper loans.

Why do we need to expand formal sources of credit in India? -SST 10th

Description : Why do we need to expand formal sources of credit in India? -SST 10th

Last Answer : Formal sources of credit in India provide loans to individuals at far cheaper rates than informal sources of credit. This helps to increase their income and they are able to repay the principal amount ... income. It will lead to more production. This helps in the economic development of a country.

5. Why do we need to expand formal sources of credit in India? -Economics 10th

Description : 5. Why do we need to expand formal sources of credit in India? -Economics 10th

Last Answer : Formal sources of credit are the Government authorised organisations that are eligible to lend money to people. It is important to expand formal sources of credit in India because the informal sources are ... , people will be able to take loans and use them for the development of the country.

Prove with an argument that there is a great need to expand formal sources of credit in rural India. -SST 10th

Description : Prove with an argument that there is a great need to expand formal sources of credit in rural India. -SST 10th

Last Answer : There is a great need to expand formal sources of credit in rural India because there is no organization which supervises the credit activities of lenders in the informal sector. They lend at whatever interest rate they want and use unfair means of getting their money back.

Prove with an argument that there is a great need to expand formal sources of credit in rural India. -SST 10th

Description : Prove with an argument that there is a great need to expand formal sources of credit in rural India. -SST 10th

Last Answer : To expand formal sources of credit in rural India, dependence on informal sources of credit has to be reduced.

Which are the two major sources of formal sector credit in India ? -SST 10th

Description : Which are the two major sources of formal sector credit in India ? -SST 10th

Last Answer : The two major sources of formal sector credit in India are - commercial banks and cooperative societies. We need to expand formal sources of credit due to following reasons : (a) Informal sources of ... -traps. (b) Formal sources of credit are cheaper and thus they help in country's development.

Mention four characteristics each of the formal and informal sources of credit in India. -SST 10th

Description : Mention four characteristics each of the formal and informal sources of credit in India. -SST 10th

Last Answer : Features of formal sources of credit are : (a) Formal sources of credit are provided by banks and cooperative societies to the borrowers. (b) Reserve Bank of India (RBI) governs the ... . (d) They generally charge higher rates of interest and exploit the borrowers for their own benifits.

What are differences between formal and informal sources of credit? -SST 10th

Description : What are differences between formal and informal sources of credit? -SST 10th

Last Answer : Formal sources: 1.These sources of credit are registered by the government and have to follow its rules and regulations. 2.RBI supervises the functioning of formal sources of credit. 3.They ... main motive is profit-making. Example: Moneylenders, traders, employees, relatives and friends, etc.

Differentiate between formal and informal sources of credit. -SST 10th

Description : Differentiate between formal and informal sources of credit. -SST 10th

Last Answer : Difference between Formal and Informal Sources

Differentiate between formal and informal sources of credit. Explain problems faced by borrowers of loan from informal sources. -SST 10th

Description : Differentiate between formal and informal sources of credit. Explain problems faced by borrowers of loan from informal sources. -SST 10th

Last Answer : The moneylenders charge very high rates of interest keep no records of transactions and harass the poor borrowers.

Explain the differences between Formal and Informal Sources of Credit. -SST 10th

Description : Explain the differences between Formal and Informal Sources of Credit. -SST 10th

Last Answer : The differences between Formal and Informal Sources of Credit are :-

What are the two main reasons for formal credit not being available to the rural poor ? -SST 10th

Description : What are the two main reasons for formal credit not being available to the rural poor ? -SST 10th

Last Answer : The two main reasons for formal credit not being available to rural poor are : (i) Absence of collateral and documentation is the main reason which prevents rural poor from getting bank loans. ... (ii) Cheap and affordable credit for rural poors is important for the country's overall development.

Why is there a pressing need to use non-conventional sources of energy in India? Give three reasons. -Geography

Description : Why is there a pressing need to use non-conventional sources of energy in India? Give three reasons. -Geography

Last Answer : Non-conventional sources of energy are those forms of energy which is renewable and unlimited. It doesn't cause environmental pollution. Solar energy, Wind, Tide, Biomass and energy from waste material ... . This will cause various consequences on the growth of the national economy of the country.

Which government body supervises the functioning of formal sources of loans in India ? -SST 10th

Description : Which government body supervises the functioning of formal sources of loans in India ? -SST 10th

Last Answer : The Reserve Bank of India supervises the functioning of formal sources of loans. Its functions are 1. Maintains a minimum cash balance to avoid cash shortages in the country. 2. Ensures that the banks ... information from the banks on how much they are lending, to whom, at what interest rate, etc.

Which government body supervises the functioning of formal sources of loans in India? Explain its functioning. -SST 10th

Description : Which government body supervises the functioning of formal sources of loans in India? Explain its functioning. -SST 10th

Last Answer : '1. The reserve bank of India supervises the functioning of formal sources of loans 2. The RBI monitors of banks in actually maintaining cash balance 3. The RBI sees that the bank give loans not just ... information to the RBI on how much they are lending ,to whom ,at what interest rate ,etc.

Which government body supervises the functioning of formal sources of loans in India? -SST 10th

Description : Which government body supervises the functioning of formal sources of loans in India? -SST 10th

Last Answer : The Reserve Bank of India (Reserve Bank of India) supervises the functioning of formal sources of loans in India. For instance, banks maintain a minimum cash balance out of the deposits they receive. Functions ... Bank of India on how much they are lending, to whom, at what interest rate, etc.

Which are the two major sources of formal sectors in India ? -SST 10th

Description : Which are the two major sources of formal sectors in India ? -SST 10th

Last Answer : The two major sources of formal sources of credit are: (i) Banks and (ii) Cooperatives. Need to expand formal sources of credit are : (i) To save the poor farmers and workers ... loan. (iii) Formal credit can fulfil various needs of the people through providing cheap and affordable credit.

Why is there a pressing need to use non-conventional sources of energy in India ? Explain any three reasons. -SST 10th

Description : Why is there a pressing need to use non-conventional sources of energy in India ? Explain any three reasons. -SST 10th

Last Answer : There is an urgent need to use non-conventional sources of energy like solar energy, wind, tide, biomass, and energy from waste material in India because of the following reasons ... The increased use of fossil fuels hampers the environment and causes serious environmental problems and degradation.

Why is the supervision of the functioning of formal sources of loans necessary ? -SST 10th

Description : Why is the supervision of the functioning of formal sources of loans necessary ? -SST 10th

Last Answer : The Reserve Bank of India (RBI) supervises the functioning of the formal sources of loans i.e. the banks and cooperatives in order to ensure that the banks give loans not just to profitmaking businesses and traders but also to small scale industries and small borrowers etc.

Which body supervises the functioning of formal sources of loans ? -SST 10th

Description : Which body supervises the functioning of formal sources of loans ? -SST 10th

Last Answer : The Reserve Bank of India supervises the functioning of formal sources of loans.

Who supervises the functioning of formal sources of loan ? -SST 10th

Description : Who supervises the functioning of formal sources of loan ? -SST 10th

Last Answer : Reserve Bank of India (RBI).

Why is the supervision of the functioning of formal sources of loans necessary ? -SST 10th

Description : Why is the supervision of the functioning of formal sources of loans necessary ? -SST 10th

Last Answer : It is necessary because banks have to submit information to the RBI on how much they are lending, to whom they are lending and what interest rate, etc.

“The rich households are availing cheap credit from formal lenders whereas the poor house holds have to pay a heavy price for borrowing.” -SST 10th

Description : “The rich households are availing cheap credit from formal lenders whereas the poor house holds have to pay a heavy price for borrowing.” -SST 10th

Last Answer : . The formal sector still meets only about half of the total credit needs of the rural people. . The remaining credit needs are met from informal sources. . Most loans from informal lenders ... the rich households who receive formal credit whereas the poor have to depend on the informal sources.

Which segment of the society receives formal credit? -SST 10th

Description : Which segment of the society receives formal credit? -SST 10th

Last Answer : It is the richer segment of society which receives formal credit.

One of the reasons a project life cycle is split into phases ic. mirror the major deployments of resources throughout the project. d. chunk work into time periods of similar durations.s to: a. facilitate formal go/no-go decision making during the project. b. balance the costs of work in each phase of project development.

Description : One of the reasons a project life cycle is split into phases is to: a. facilitate formal go/no-go decision making during the project. b. balance the costs of work in each phase of ... the major deployments of resources throughout the project. d. chunk work into time periods of similar durations.

Last Answer : a. facilitate formal go/no-go decision making during the project.

One of the reasons a project life cycle is split into phases is to: a. facilitate formal go/no-go decision making during the project. b. balance the costs of work in each phase of project development. c. mirror the major deployments of resources throughout the project. d. chunk work into time periods of similar durations.

Description : One of the reasons a project life cycle is split into phases is to:  a. facilitate formal go/no-go decision making during the project.  b. balance the costs of work in each phase ... the major deployments of resources throughout the project.  d. chunk work into time periods of similar durations.

Last Answer : a. facilitate formal go/no-go decision making during the project.

B) CaixaBank Explanation: As per the agreement, they will expand banks‘ guarantee transaction businesses by jointly providing credit to Indian-Spanish joint ventures and Indian local enterprises The banks will collaborate in areas of mutual interest such as syndicated loan business, guarantee transactions, trade finance and export credit agency finance, infrastructure finance and networking services, among others.

Description : B) CaixaBank Explanation: As per the agreement, they will expand banks guarantee transaction businesses by jointly providing credit to Indian-Spanish joint ventures and Indian local ... finance and export credit agency finance, infrastructure finance and networking services, among others.

Last Answer : Recently an Indian bank launched next generation features on its app „iMobile‟ which will enable customers to instantly pay taxes and book railway tickets within the app. Name the bank. A) Federal Bank B) Punjab National Bank C) Kotak Mahindra Bank D) ICICI Bank E) Bandhan Bank

By offering credit through its shops, Allied, the furniture and carpet retailer, is trying to get consumers to: A)decrease both disposable and discretionary income B)expand disposable income at the expense of discretionary income C)expand current buying power at the expense of future buying power D)expand both disposable income and wealth

Description : By offering credit through its shops, Allied, the furniture and carpet retailer, is trying to get consumers to: A)decrease both disposable and discretionary income B)expand disposable income ... current buying power at the expense of future buying power D)expand both disposable income and wealth

Last Answer : C)expand current buying power at the expense of future buying power

When more than one bank is allowing credit facilities to one party in coordination with each other under a formal arrangement, the arrangement is generally known as___________ A. Consortium B. Syndication C. Multiple Banking D. Participation

Description : When more than one bank is allowing credit facilities to one party in coordination with each other under a formal arrangement, the arrangement is generally known as___________ A. Consortium B. Syndication C. Multiple Banking D. Participation

Last Answer : A. Consortium Explanation: A banking syndicate formed by multiple banks, often from different countries, for the singular purpose of financing a specific project that is too large for any individual ... in the risk and the profits. Upon completion of the project the consortium bank is disbanded.

Why is cheap and affordable credit important for the country’s development? Explain three reasons. -SST 10th

Description : Why is cheap and affordable credit important for the country’s development? Explain three reasons. -SST 10th

Last Answer : Cheap and affordable credit is important for the country's development because of the following reasons: (i) This would lead to higher incomes and many people could then borrow cheaply for a variety of ... could set up new industries or trade in good. All these lead to the country's development.

Give three reasons why we need to save the biodiversity of our planet? -SST 10th

Description : Give three reasons why we need to save the biodiversity of our planet? -SST 10th

Last Answer : We must conserve or save biodiversity of our planet because :- (i) If forests are not saved, whole wildlife will be under threat; they form an important part of food cycle which will be ... affected by loss of biodiversity as in many societies they collect food and fuel, fodder, water etc,.

Why are poor households still dependent on informal sources of credit? -SST 10th

Description : Why are poor households still dependent on informal sources of credit? -SST 10th

Last Answer : Reasons: . Banks are not present everywhere in rural India. . Even if they are present, getting a loan from a bank is much more difficult than taking a loan from informal sources. ... charge very high rates of interest, keep no records of the transactions and harass the poor borrowers.

“Poor households still depend on informal sources of credit.” -SST 10th

Description : “Poor households still depend on informal sources of credit.” -SST 10th

Last Answer : Poor Households still depend on informal sources of credit because:- . Banks are not present everywhere on rural area. . Even when they are present getting a loan from the bank is much more ... money lenders they know the borrowers personally and they are willing to give a loan without collateral.

What are the two categories of sources of credit ? Mention four features of each. -SST 10th

Description : What are the two categories of sources of credit ? Mention four features of each. -SST 10th

Last Answer : The two sources of credit are: Formal Credit: 1. It's provided by banks and cooperatives. 2. Reserve Bank of India regulates the functioning of the formal sources of credit like the interest rate 3. ... get the money back. 4. Most of the times, lenders are poor farmers who fall into debt traps.

What are the various sources of credit in rural areas? Which one of them is the most dominant source of credit and why ? -SST 10th

Description : What are the various sources of credit in rural areas? Which one of them is the most dominant source of credit and why ? -SST 10th

Last Answer : In rural areas, there are both informal sources like moneylenders, traders, relatives etc. and formal sources of credit like commercial banks and cooperative societies. Informal sources are dominant: ... the previous loan. But usually, moneylenders only exploit the poor with high-interest rates.

What are the various sources of credit in rural areas? -SST 10th

Description : What are the various sources of credit in rural areas? -SST 10th

Last Answer : Various sources of credit in rural areas are : (i) Agricultural traders, (ii) Moneylenders, (iii) Commercial banks, (iv) Cooperative societies and (v) Relatives and friends. The most convenient source ... , livestock etc.) and uses this as a guarantee to the lender until the loan is repaid.

What is necessary to reduce the dependence on informal sources of credit in rural areas? -SST 10th

Description : What is necessary to reduce the dependence on informal sources of credit in rural areas? -SST 10th

Last Answer : It is necessary that banks and cooperatives increase their lending in the rural areas.

What are the drawbacks of informal sources of credit? -SST 10th

Description : What are the drawbacks of informal sources of credit? -SST 10th

Last Answer : (i) Most of the informal lenders charge a much higher interest on loans. Thus the cost to the borrower of the informal loans is much higher. (ii) Higher cost of borrowing means a larger part of ... might wish to start an enterprise by borrowing may not do so because of the high cost of borrowing.

What are the two categories of sources of credit? Mention four features of each. -SST 10th

Description : What are the two categories of sources of credit? Mention four features of each. -SST 10th

Last Answer : The two sources of credit are: Formal Credit: 1. It's provided by banks and cooperatives. 2. Reserve Bank of India regulates the functioning of the formal sources of credit like the interest rate 3. ... get the money back. 4. Most of the times, lenders are poor farmers who fall into debt traps.

Name the various sources of credit in Sonpur. -SST 10th

Description : Name the various sources of credit in Sonpur. -SST 10th

Last Answer : There are various sources of credit which are available in Sonpur. These are as follows: (i) Agricultural traders (ii) Cooperative societies (iii) Moneylenders (iv) Commercial banks (v) Relative and friends, etc.

“Most of the poor households are still dependent on informal sources of credit.’’ -SST 10th

Description : “Most of the poor households are still dependent on informal sources of credit.’’ -SST 10th

Last Answer : (i) Banks are not present everywhere in rural India, whereas informal sources are easily available in all villages. (ii) Getting a loan from a bank is much more difficult for poor ... relatives, or traders and landlords, who know the borrowers personally and therefore do not demand collateral.

Justify the reasons for using current sources in integrated circuits.

Description : Justify the reasons for using current sources in integrated circuits.

Last Answer : (i) Superior insensitivity of circuit performance to power supply variations and temperature.  (ii) More economical than resistors in terms of die area required to provide bias currents of ... the high incremental resistance of current source results in high voltage gain at low supply voltages.

Mention any three points of distinction between formal sector loan and informal sector loan. -SST 10th

Description : Mention any three points of distinction between formal sector loan and informal sector loan. -SST 10th

Last Answer : Three points of distinction between Formal sector loan and Informal sector loan

Mention three points of difference between formal sector and informal sector loans. -SST 10th

Description : Mention three points of difference between formal sector and informal sector loans. -SST 10th

Last Answer : Formal sector loans: (i) Loans from banks and cooperatives. (ii) Under supervision of the Reserve Bank of India. (iii) Reasonable rates of interest. Informal sector loans: (i) Loans from ... friend, traders, etc. (ii) No supervision of any institution. (iii) Very high rates of interest.

What measures were adopted by the producers in India to expand the market for their goods in the nineteenth century? -SST 10th

Description : What measures were adopted by the producers in India to expand the market for their goods in the nineteenth century? -SST 10th

Last Answer : When Indian businessmen set up industries in the late 19 th century they avoided competing with Manchester goods in the Indian market.Since yarn was not an important part of British imports ... operated in India itself and when opportunities of investment in industries opened up, set up factories.

What three ways can you expand a given territory?

Description : What three ways can you expand a given territory?

Last Answer : purchase,annexation,and cession

What three ways can you expand a given territory?

Description : What three ways can you expand a given territory?

Last Answer : purchase,annexation,and cession

Read the following passage and pick out any one of the prudential reasons for power sharing offered in this. 'We need to give more power to the panchayats to realize the dream of Mahatma Gandhi and the hops of the markers of our Constitution. -SST 10th

Description : Read the following passage and pick out any one of the prudential reasons for power sharing offered in this. 'We need to give more power to the panchayats to realize the dream of Mahatma Gandhi and the hops of the markers of our Constitution. -SST 10th

Last Answer : 'When people participate in the planning and implementation of developmental schemes, they would naturally exercise greater control over these schemes. This would eliminate the corrupt middlemen.' This ... groups and gives more powers to the panchayats which helps maintain the political stability.

Do you think we should expand oil drilling in the United States?

Description : Do you think we should expand oil drilling in the United States?

Last Answer : We already do. We produce lots of natural gas and plenty of crude oil.

my wife and I would like to expand our home based daycare to a facility on our property.What steps do we take to obtain a license.Who do we contact to get started.?

Description : my wife and I would like to expand our home based daycare to a facility on our property.What steps do we take to obtain a license.Who do we contact to get started.?

Last Answer : You would need to go to the following government website for a free handbook that describes the steps needed to start a day care: nccic.acf.hhs.gov.