Mudra Bank

MUDRA Bank

MUDRA means Micro Units Development and Refinance Agency.

• Mudra bank is being set up through a statutory enactment and will be responsible for developing and refinancing through Pradhan Mantri Mudra Yojna.
• It is first set up as a subsidiary of the Small Industries Development Bank of India (SIDBI). It will later be converted into full-fledged bank through an act of the parliament.
• MUDRA Bank is a public sector financial institution in India, It provides loan at low rates to small entrepreneurs.

OBJECTIVE

It was launched on 8th April 2015 with the objective of regulating micro and small enterprise financing business, and supporting them particularly those members who belongs from scheduled castes and scheduled tribes.

• MUDRA Bank will also register MFIs (Micro Finance Institutions)and will be responsible for accreditation and rating of MFI.

AIM

The finance ministry said measures to be taken up by the MUDRA are targeted mainly on young, educated or skilled workers and entrepreneurs including women entrepreneurs.

• Basically small entrepreneurs and small businessman are often cut from banking system because of limited branch presence, so MUDRA bank will partner with local coordinators and provide finance to small and micro businesses.

Important Figures about MUDRA BANK

The bank will be set up with the initial corpus of ₹ 20000 crore and a credit guarantee corpus of ₹ 3000 cr.

The bank have categorized the amount of loan to be given in three different categories-

• SHISHU- This is the first stage and in it the loan will be given for up to ₹ 50000.
• KISHOR- In the second stage a loan amount will be ranging from 50,000 to₹ 5 lakh.
• TARUN- This is last category which will provide up to₹ 10 lakh.

The bank will cater to 5.77 crore small business units that spread all across India who currently find it difficult to access credit from the regular banking system.