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.
Every year since 2000, February 21 is observed as International Mother Language Day by United Nations Educational, Scientific and Cultural Organisation (UNESCO). It is to celebrate linguistic and cultural diversity, and multilingualism.
Indian women marrying NRIs, glamorous though it sounds, has recently become a cause of serious concern. The reason for this is the alarmingly high rates of desertion of women marrying NRIs, said a blog posted on the Niti Aayog website. The blog ‘NRI: Non Reliabl
CBI is supposed to be the last resort to catch the corrupt after all other options have not yielded the desired result. But, who will now tackle corruption now that two of the former top officials of the premier investigating agency are themselves facing charges. India is s
Post demonetisation, what are the challenges faced by banks? Post demonetisation, the major challenges are retention of CASA [current account, savings account] deposits, deployment of these funds, impact of spurt/decline in low-cost deposits on MCLR [marginal cost of fund
9.44 The irresistible force of even as powerful an idea as UBI will run into the immovable object of a resistant, pesky reality. So, what is the way forward, always remembering that the yardstick for assessment is not whether UBI can be perfect or faultless but only whether it can impr
Should action be taken against hospitals which have hiked the heart surgery cost?