Question

Should there be a supervisor such as RBI that looks into the loan activities of informal lenders? Why would its task be quite difficult ?

Answer 1

obviously,there should be a supervisor for checking the loan activities of informal lenders.However,its task is quite difficult because informal sector constitutes many people who have different kind of business of their own, besides lending.They are not registered with the government.

Answer 2

Question: Should there be a supervisor such as the RBI that looks into the loan activities of the informal lenders? Why would its task be quite difficult?

Answer: There must be a supervisor for checking the loan activities of informal lenders, just as the Reserve Bank of India supervises other banks. The task would be quite difficult because informal sector includes several people who have their variety of business besides lending, and the most important part to be noticed about these sectors is that they are not registered with the government. Without registration, there is a risk of fraud or any kind of mishappening with the borrowers as well as with the lenders of loan...

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