Question

should there be a supervisor that looks into loan activities of informal lenders

Answer 1

The informal lenders work according to their own set of rules. They seldom maintain proper records and do not reveal their transaction detail to the government authority. Most of the money involved in this is black money and the lender always wants to earn windfall profits. They will oppose every attempt to bring them into the ambit of governance. Hence, it would be very difficult for supervisor to look into the loan activities of informal sector.

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...

____________________________________________________

<Judge It Yourself...>

Hope it helps you! ヅ

✪ Be Brainly ✪