The functioning of the formal source of credit is supervised by:

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Government of India

Reserve Bank of India

Ministry of Finance

None of the above

answer is B.

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Detailed Solution

The formal sources of credit are regulated by the Reserve Bank of India.
It helps ensure that credit services are provided to the needy. The Reserve Bank of India has identified certain areas to which a certain percentage of loans provided by the commercial banks should go, which include renewable energy, education, agriculture, micro, small and medium enterprises, housing, social infrastructure, and so on. The rate of interest at which these loans are provided is also majorly determined by the Reserve Bank of India, which ensures that those requiring loans are not exploited.

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