MUDRA BANK

Rs 20,000 cr MUDRA Bank launched by PM Narendra Modi

i. PM Narendra Modi launched the Rs 20,000 cr Micro Units Development Refinance Agency (MUDRA) Bank and said , “the aim of the bank is to fund the unfunded small entrepreneurs and to strengthen savings habit in the country”.

ii. MUDRA Bank will provide credit of up to Rs 10 lakh to small entrepreneurs and act as a regulator for ‘Micro-Finance Institutions’ (MFIs).

iii. The roles envisaged for MUDRA include laying down policy guidelines for micro enterprise financing business and registration of MFI entities as well as their accreditation and rating.

iv. MUDRA is to be set up through a statutory enactment. It would be responsible for developing and refinancing through a Pradhan Mantri MUDRA Yojana.

v. MUDRA would also partner with state/regional level coordinators to provide finance to “Last Mile Financiers” of small/micro business enterprises