Reasons for Difficulty:

1. Regulatory Challenges: Informal lenders operate outside formal rules, making oversight complex.
2. Lack of Records: Transactions often lack documentation, making monitoring tough.
3. Diverse Practices: Varied lending methods across regions hinder standardized regulations.
4. Social Dynamics: Informal lending relies on trust and community ties, resistant to external oversight.
5. Geographical Reach: Informal lenders serve remote areas, making monitoring logistics challenging.
6. Resource Constraints: It demands substantial manpower and technology, often not readily available.
7. Balancing Act: Supervision must balance consumer protection with supporting financial inclusion efforts.

While supervising informal lending could protect consumers, complexities in its diverse, unstructured nature pose challenges for effective oversight.