MUDRA Bank to be launched on April 8

GN Bureau | March 26, 2015


#mudra bank   #narendra modi   #arun jaitley  

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.
 

Comments

 

Other News

“Practise ‘mental distancing’ to keep calm amid epidemic”

Half way through the year 2020, it has been a tough time all around the world: Covid-19 epidemic, loss of lives, economic hardships and also numerous other problems – natural disasters and political protests. Coming together, it all has mental health under immense strain. To discuss this and othe

Understanding immunity: How to boost it during Covid-19

In a first, the Department of Home Science, Sri Padmavati Mahila Visvavidayalam (Women’s University) Tirupati, Andhra Pradesh, recently organized an international webinar on “Nutrition and Immune System Support during COVID-19 Pandemic”. Speakers included eminent national and internationa

Covid-19: India’s recovery rate improves to 59.43%

Even as Unlock enters the second phase, the number of Covid-19 infections continues to rise to record levels and India remains No 4 in the worldwide list, yet there is glimmer of hope: its recovery rate is also rising in tandem. There are 1,27,864 recovered cases more than the active Covid-1

Coming soon at a station near you: private trains!

A long-debated idea is finally coming to fruition as the Indian railways has decided to join hands with the private sector, in running some train services to begin with. The ministry of railways has invited ‘request for qualifications’ (RFQ) for private participation for operatio

A place of local democracy in pandemic governance: The case of Mumbai

Democracy in India is now taken for a fact, with an unstated assumption that all our institutions are democratic and hence often our successes and more often failures are attributed to ‘democracy’. However, a key frontier where democracy remains a challenge is that of local governments and that

Why TikTok, other apps were banned: “Engaged in anti-India activities”

India, facing China’s aggressiveness at border, has banned 59 smartphone apps, including TikTok, as they were indulging in activities harmful to India’s sovereignty and integrity. The reason cited was: “in view of information available they are engaged in activities which [



Archives

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter