CAIT wants govt to review implementation of MUDRA Yojana

Traders' body CAIT has suggested the government to review the implementation of MUDRA Yojana, claiming that a large number of small traders are unable to obtain loans under the scheme.
It also urged the government to make MUDRA an independent regulator, recommending that non banking finance companies, micro finance institutions, trusts & societies should be linked with MUDRA Yojana and banks should be directed to re-finance such entities instead of awarding loans directly to the borrowers.
"Large number of small traders for whom MUDRA was launched are unable to obtain loans despite all attempts and are being turned down by banks on one pretext or the other," CAIT said.

Talking about the progress of the MUDRA Yojana, Prime Minister Narendra Modi in his address to the nation on Saturday had said it was as encouraging as last year, with nearly 3.5 crore people benefitting from it.
"The government now aims to double this, giving priority to dalits, tribals, backward classes and women," he had said.
Banks are expected to disburse Rs 1.80 lakh crore loans under the Pradhan Mantri Mudra Yojana (PMMY) in the current fiscal. Last year, 3.5 crore beneficiaries availed of Rs 1.22 lakh crore loans under PMMY. Under the scheme, loans ranging from Rs 50,000 to Rs 10 lakh are provided to small entrepreneurs.

Besides, CAIT suggested the government to set up a Digital Payments Promotion Board to encourage more people to adopt digital payment mechanisms and monitor the digital payments landscape in the country.
The board should comprise of senior government officials, representatives of different verticals of non corporate sector including trading community and payment technology providers, banks & other financial institutions, the Confederation of All India Traders (CAIT) said.