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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?
There should be a watchdog like the Reserve Bank of India to oversee the activities of informal lenders. His job will be tough because informal lenders are not approved by the government or any other recognized institutions. They are small and scattered and have personal relationship with the borrowers. Getting information about such informal lenders and taking action on them is a difficult task.
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