PM launched MUDRA Bank under PMJDY to fund small entrepreneurs [ Current News (Concise) ]
Prime Minister Narendra Modi launched the MUDRA (Micro Units Development and Refinance Agency Ltd.) Bank dedicated regulator and refinance for small entrepreneurs. MUDRA bank was launched under the ambitious Pradhan Mantri Jan Dhan Yojana (PMJDY). The bank stared with 20,000 crore capital and further 3000 crore allocated in budget 2015-16. The bank will provide credit of up to 10 lakh rupees to small entrepreneurs and act as a regulator for Micro-Finance Institutions (MFIs).
There are different role of MUDRA Bank-
- Lay down responsible financing practices to ward off over indebtedness and ensure proper client protection principles and methods of recovery
- Lay down policy guidelines for micro enterprise financing business
- Registration of MFI entities
- Accreditation/rating of MFI entities
- Development of standardised set of covenants governing last mile lending to micro enterprises
- Promoting right technology solutions for the last mile
Products offered by MUDRA Bank-
- Shishu will cover loans up to 50000 rupees
- Kishor will cover loans above 50000 rupees and up to 5 lakh rupees
- Tarun will cover loans above 5 lakh rupees and up to 10 lakh rupees
The concept of MUDRA Bank goes beyond credit only approach and offers a credit plus solution for Micro-Finance Institutions enterprises spread across the country.
- Published on: April 9, 2015