CAIT calls for Digital Payments Promotion Board

The small traders will be in better position to serve their customers by keeping sufficient stock and variety of range. It would also encourage small traders to show maximum turnover in Books of Account through banking channel.

CAIT calls for Digital Payments Promotion Board



The Confederation of All India Traders (CAIT) has called for the constitution of a Digital Payments Promotion Board comprising of senior government officials, representatives of different verticals of non-corporate sector, including trading community and payment technology providers, Banks & other financial institutions to intensify steps to encourage more and more people to adopt digital payments and to monitor digital payment landscape.


In view of the increased stress being laid on the digital payments, a comprehensive policy for promotion of digital payments is greatly being felt and, the proposed Board can act as a catalyst in ensuring faster adoption of electronic payments in the country, says the traders body.

The CAIT also hailed the announcements made by Prime Minister Narendra Modi providing relaxations in banking facilities for small traders and MSME stating that it will promote easy lending by banks and will certainly convert informal economy to a formal one. The initiative of Prime Minister would encourage small traders to borrow money through banking channels and would also encourage acceptance of payment through digital mode of payment.

“The collateral security is one of the major deterrents for small merchants in availing funds from banks and financial institutions. The Credit Guarantee Corporation is used to guarantee loans of up to Rs 1 crore to traders,” says CAIT secretary general Praveen Khandelwal. “The Prime Minister has announced an increase in this guarantee limit to Rs 2 crore which means small borrowers will no more be required to give collateral security for credit limits up to Rs 2 crore which will give a big boost to business,” he adds.

The small traders will be in better position to serve their customers by keeping sufficient stock and variety of range. It would also encourage small traders to show maximum turnover in Books of Account through banking channel.

The CAIT has demanded that Reserve Bank of India check all the loans given to small traders to verify whether banks have taken collateral security from them or not. It has also demanded that RBI should also conduct audit of all such loan applications to ensure that PM's initiative is implemented in letter and spirit.

“With small traders eligible for availing credit from banks, huge cash will come as working capital in retail market. For reasons best known to them, the banks are reluctant in advancing loans to small businesses which is the major reason of low-level lending by banks to non-corporate sector,” puts in CAIT national president B C Bhartiya.

The CAIT has also called for review of the working of MUDRA loans since large number of small traders for whom MUDRA was launched are unable to obtain Mudra loans despite all attempts and are being turned down by banks on one pretext or the other. They have urged the Government to make MUDRA as an independent regulator and link the Non Banking Finance Companies, Micro Finance Institutions, Trust & Societies with MUDRA scheme.