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Q.

The supervision of the functioning of ____ loans is necessary.


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Detailed Solution

The supervision of the functioning of formal loans is necessary.
The formal sources of loans are under the control of the Reserve Bank of India (RBI). The formal sources of credit must be monitored in order for the banks to give loans to both the wealthy and underprivileged segments of society. Additionally, banks must adhere to the correct borrowing and lending practices. Banks have to submit information regarding lending, that is, the amount given as a loan, along with the rate at which interest is calculated.
 
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