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

Yes, there should be a supervisor, such as the Reserve Bank of India, that looks into the loan activities of informal lenders but it comes with numerous challenges.

1. Informal lenders are numerous and operate across various professions, making it difficult to track their activities.
2. Informal lending lacks proper records, making supervision challenging.
3. There may be cultural resistance to formalising traditional lending practices, as these are often deeply rooted in local customs and practices.