Question

Which of the following is detrimental to rural citizens with regards to banking services?

• A. Commercial banks
• B. Cooperatives
• C. Chit funds
• D. Moneylenders

Answer 1

The correct option is D Moneylenders

Moneylenders are detrimental to citizens in rural areas since they tend to exploit the rural citizens in various ways based on the money they lend the latter. Rural citizens often avail loans for agricultural purposes from local moneylenders in their areas due to the lack of banking facilities or the lack of awareness to access and utilise banking facilities. For example, moneylenders charge the rural citizens a higher interest rate and exploit them by demanding more money.