What is the difference between formal and informal sector in a point a

1.	What is the difference between formal and informal sector in a point answer
Answer» Rich people prefer to formal sector and poor people refer to informal Formal sector includes RBI,ICICIbanks and informal sector include moneylender, traders etc. In formal sector there is collateral and in informal there is no collateral In easy way we can say that formal sector is goverment sector or informal is private explain it in the question

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