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Q.

Which of the following organizations supervises the functioning of formal sources of credit in India?

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a

WTO

b

RBI

c

FCI

d

World Bank

answer is B.

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Detailed Solution

The formal sources of credit in India are supervised by the Reserve Bank of India.
It is the central bank of the country, and it acts as the guardian of all the banks. It is a regulatory body that handles the Indian Banking System. It comes under the Ministry Of Finance and is responsible for issuing the Indian Currency-Rupee. Formal sources of credit require proper documentation and collateral before releasing credit. They work very efficiently as they are supervised by the Reserve Bank of India.

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