It will act as regulator and decide on policies for micro enterprise financing
GN Bureau | April 8, 2015
Prime minister Narendra Modi on Wednesday launched Mudra Bank, which will provide credit of up to Rs 10 lakh to small entrepreneurs and act as a regulator for 'micro-finance institutions' (MFIs).
The Micro Units Development Refinance Agency or the Mudra Bank comes under Pradhan Mantri Jan Dhan Yojana and it will frame policy guidelines for micro enterprise financing business and registration of MFI entities as well as their accreditation and rating. It will also lay down "responsible financing practices" to ward off over indebtedness and ensure proper client protection principles and methods of recovery, besides development of standardised set of covenants governing last mile lending to micro enterprises.
There are about 5.77 crore small business units. These units find it difficult to access credit from the regular banking system. This is where Mudra comes in.
The Bank will nurture small businesses through different stages of growth and development of businesses termed as Shishu, Kishor and Tarun.
Shishu: This is the first step when the business is just starting up. The loan cover in this stage will be up to Rs 50,000. Kishor: In this stage business, the entreprenuer will be eligible for a loan ranging from Rs 50,000 to Rs 5 lakh. Tarun: This last stage of growth envisages loans for upto Rs 10 lakh.
In his budget speech, finance minister Arun Jaitley had proposed the Mudra Bank with a corpus of Rs 20,000 crore, and credit guarantee corpus of Rs 3,000 crore.
"Providing access to institutional finance to such micro/small business units/enterprises will not only help in improving the quality of life of these entrepreneurs but also turn them into strong instruments of GDP growth and employment generation," the finance ministry said in a statement.
Yield gaps in wheat production in India can be countered with an earlier sowing date, says a University of Michigan researcher. Using a new way to measure wheat yields, Meha Jain, assistant professor at the U-M School for Environment and Sustainability, found that the wheat yie
Kharpariya village, about 50 km from the headquarters town of Madhya Pradesh’s Mandla district, is like many villages in the region, home to the Baiga, deemed a particularly vulnerable tribal group (PVTG) for whom permanent contraception methods are banned to prevent extinction. However, care for p
Somabhai Modi says he remembers only one occasion when he offered his younger brother prime minister Narendra Modi advice regarding work. This, he says, was when Modi was chief minister of Gujarat. After one of his weekly grievance redressal sessions, the then chief minister had enquired after the well-b
Should ration cards not linked to Aadhaar be rendered ineligible?
INS Kiltan, the third anti-submarine warfare (ASW) stealth corvette built under project 28 (Kamorta class), was commissioned into the Indian Navy by defence minister Nirmala Sitharaman at the naval dockyard in Visakhapatnam. The anti-submarine warfare stealth corvet
Maharatna enterprise, Steel Authority of India Ltd. (SAIL) has supplied defence grade micro-alloyed grade of steel (DMR 249A) steel plates for the indigenously built anti-submarine warfare (ASW) stealth corvette INS-Kiltan commissioned into Indian Navy. SAIL’s integ