Confederation of All India Traders (CAIT) has asked the government to remove Mudra from RBI’s purview and said the central bank has failed to deliver requisite finances to small businesses in the country.

Micro Units Developm-ent and Refinance Agen-cy (Mudra) was formed by the government to provide easy loans to small businesses.

“We have urged the Union finance minister Arun Jaitley to free Mudra from the clutches of RBI by passing a legislation in Parliament and to make MUDRA as an independent regulator to lend finance to existing financial ecosy-stem catering to the needs of non-corporate sector,” CAIT said.

“Such a step will be in accordance with the resolution of the Union Cabinet and ‘funding for unfunded’ declaration of Prime Minister Naren-dra Modi,” it added, adding that RBI has failed to help to small businesses.