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Difference between the formal and informal sector

Answer» Thanks gaurav
Formal sector :-a) this sector is mainly supervised by the RBIb) it includes banks and cooperativesc) in this collateral is requiredd) it provides loans comparatively at a lower ratee) it doesn\'t lead to debt trapinformal sector :-a) no organisation to supervise this sectorb) these are mainly consists of money lenders friends and relatives traders landowners e.t.c.c) Collateral is not requiredd) this sector charges higher interest ratese) this could lead to death trap .
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