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.
"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.
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.
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