Formal sources of credit consist of regulated sources like :

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Commercial banks

Regional rural banks

Cooperative credit societies

All of the above

answer is D.

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Detailed Solution

Formal sources of credit consist of regulated sources like commercial banks, regional rural banks, cooperative credit societies, etc. These are organized and registered institutions that need to follow the guidelines set by the government. The Reserve Bank of India supervises and controls the functioning of these sources. They provide loans to the needy at reasonable interest rates. However, they require the fulfillment of a large number of formalities for the same. They may require the borrowers to provide collateral or prove their creditworthiness. Due to all these legalities, the poor section of society faces difficulty accessing the formal sector to meet their credit requirements.

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