GN Bureau | March 26, 2015
Giving a major boost to the micro-finance sector prime minister Narendra Modi will launch MUDRA (Micro Units Development and Refinance Agency) Bank on April 8. Finance minister Arun Jaitley in his budget 2015 speech had announced the formation of MUDRA Bank. He said, “Our government firmly believes that development has to generate inclusive growth.”
Talking about the need for the new institution he said, “While large corporate and business entities have a role to play, this has to be complemented by informal sector enterprises which generate maximum employment.”
Adding further Jaitley said, “There are some 5.77 crore small business units, mostly individual proprietorship, which run small manufacturing, trading or service businesses. 62% of these are owned by SC/ST/OBC. These bottoms of the pyramid, hard-working entrepreneurs find it difficult, if not impossible, to access formal systems of credit. I, therefore, propose to create a Micro Units Development Refinance Agency (MUDRA) Bank, with a corpus of Rs 20,000 crore, and credit guarantee corpus of Rs 3,000 crore.”
MUDRA Bank will refinance Micro-Finance Institutions through a Pradhan Mantri Mudra Yojana. In lending, priority will be given to SC/ST enterprises. “These measures will greatly increase the confidence of young, educated or skilled workers who would now be able to aspire to become first generation entrepreneurs; existing small businesses, too, will be able to expand their activities. Just as we are banking the un-banked, we are also funding the un-funded,” said the finance minister.
In order to decide the modalities of functioning of MUDRA Bank, a meeting of stake holders consultation was held in New Delhi on March 25 under the chairmanship Hasmukh Adhia, secretary, department of financial services, in which all stakeholders, including cross section of micro finance institutions, NBFCs, Banks, NABARD, SIDBI and RBI representatives were present.
“Based on the consultation which took place today as well as the consultation which will happen in the days to come, the exact modalities of functioning of MUDRA Bank and its activities would be framed before the formal launch of MUDRA Bank on April 8”, said a finance ministry press release dated March 25.
Barely a month after the global Wannacry cyber hack, a new variant of ransomware malware has locked systems across several European countries and India. Petya, as cyber researchers call it, uses vulnerability in the Microsoft’s Windows system, and encrypts the computer files. It is understo
Prafulla Samantra, a social activist from Odisha has bagged the Goldman Environmental Prize, described as the Green Nobel Prize, for his long struggle to save the Niyamgiri hills from bauxite mining. He received the award in San Francisco in April 2017. He had fought the Niyamgiri issue right up to the Sup
What kind of ally should India consider the US?
The USA declaring Hizbul Mujahideen chief Syed Salahuddin as a specially designated global terrorist may not take the sting out of terrorists’ plans in Kashmir immediately but it has given a huge setback to Kashmiri separatists who had always hoped for American intervention in the Indo-Pak standoff o
Vani Jairam’s childhood dream of becoming a playback singer was realised when veteran film music composer Vasant Desai gave her the opportunity to sing Bole Re Papi Hara and two other songs in the movie Guddi. After that, the multilingual singer went on to sing for eminent music per
Should there be death penalty for those involved in lynching?