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MUDRA SHOPS BE OPEN IN MARKETS FOR FINANCIAL INCLUSION OF SMALL BUSINESSES
CAIT URGE GOVT TO MAKE MUDRA AS AN INDEPENDENT REGULATOR
Since the formal banking sector in India has failed to meet financial needs of small businesses in the Country, we call upon Union Finance Minister Mr. Arun Jaitley to bring a law in next session of Parliament for making Micro Units Development & Refinance Agency (MUDRA) as an independent regulator, outside the ambit of RBI, to develop and regulate finance sector under MUDRA for catering to financial requirements of small businesses for which the MUDRA has been created by the Government. To reach the last mile borrower, MUDRA shops should be open in markets where a common man can walk in easily and obtain small loans-added CAIT.
CAIT National President Mr. B. C.Bhartia & Secretary General Mr. Praveen Khandelwal regretted that RBI has never taken care of financial inclusion of small businesses with the result that only 4% of non corporate sector could able to receive finances from core banking sector. This factor and potential of small businesses prompted Prime Minister Shri Narendra Modi to launch MUDRA on 8th April,2015 with a clear mandate for “funding the unfunded”. Thousands of existing lending eco-system consisting of Non Banking Finance Companies, Micro Finance Institutions, Trust and Societies under the ambit of Mudra for disbursement of MUDRA loans in order to achieve the goal of Mudra to reach out to last borrower.
“If big businesses can have SEBI as their regulator and developer than Small Businesses deserves its own Regulator & Developer and even more in terms of MUDRA and therefore an enabling legislation may be brought in budget session of the Parliament making MUDRA as an independent Regulator & Developer”-added CAIT.
Both Mr. Bhartia & Mr. Khandelwal said that MUDRA is a powerful and innovative idea to connect World’s largest dis aggregated business ecosystem consisting of 5.77 crore non-corporate, self organised small businesses which is in real terms an employment driver in the tens of millions where other sectors are not even close to it. The sector is not supported by Credit from formal sources and is suffer from lack of access and high cost and is operating outside the formal system. There is a need to reel them in which in turn will culminate into increase in GDP & tax collection.
