In an ambitious move to encourage young, educated or skilled workers and entrepreneurs, including women entrepreneurs, across India, Prime Minister Narendra Modi on Wednesday launched MUDRA (Micro Units Development Refinance Agency) bank, a refinance agency worth INR 200 billion. Besides providing credit of up to Rs 10 lakh to small entrepreneurs, the bank will act as a regulator for MFIs (Micro-Finance Institutions).
While the scheme is likely to boost nation’s growth, the actual growth will depend on the nature of the sectors that get priority and attract public interest. India needs to ensure that the young generation does not go blindly after industrialization but utilize the resources to rebuild India’s traditional business sectors, mainly agriculture, farming, cow protection, clothe manufacturing, etc. for these constitute the backbone of India’s financial strength. The reason today India is considered least vulnerable to the impending economic turmoil in the world is its massive infrastructure traditionally focussed on these sectors.
PM Modi launches Rs 20k cr MUDRA bank for small entrepreneurs: All you need to know
Prime Minister Narendra Modi on Wednesday launched the Micro Units Development Refinance Agency (MUDRA)
The roles envisaged for MUDRA include laying down policy guidelines for micro-enterprise financing business and registration of MFI entities, as well as their accreditation and rating.
Mudra Bank is being set up through a statutory enactment and will be responsible for developing and refinancing through a Pradhan Mantri MUDRA Yojana. The basic idea behind this bank is this: since small entrepreneurs are businesses are often cut off from banks, MUDRA will partner with local coordinators and provide finance to “Last Mile Financiers” of small/micro businesses.
Here’s all that you need about the MUDRA BANK:
1. MUDRA targets young, educated or skilled workers and entrepreneurs including /women entrepreneurs
2. MUDRA Bank to have a corpus of Rs 20,000 crore
3. The roles envisaged for MUDRA include:
4. Beauty parlours, hawkers to be covered by MUDRA Bank:
5. Credit Plus Approach: