Ministry/Department : Ministry of Finance
MUDRA stands for Micro Units Development and Refinance Agency
Objective:
The core objective of the bank is to fund the unfunded. It will finance to “Last Mile Financiers” of small/micro businesses. The lending priority will be given to SC/ST enterprises
MUDRA Bank
- MUDRA Bank will be set up as a statutory body
- It will regulate and refinance all MFI who lend to MSME engaged in small manufacturing, trade or services.
- It will partner all state/regional level coordinators to provide easy finance
to even the remote investors.
- MUDRA Bank has rightly classified the borrowers into three segments:
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- the starters,
- the mid-stage finance seekers and
- the next level growth seekers.
- To address the three segments, MUDRA Bank has launched three loan instruments:
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- Shishu: covers loans upto Rs 50,000/-
- Kishor: covers loans above Rs 50,000/- and upto Rs. 5 lakh
- Tarun: covers loans above Rs 5 lakh and upto Rs 10 lakh
- It provides a loan at low rates to small entrepreneurs
- The bank has been allotted a Refinance Fund of Rs. 20,000 Crores from the shortfalls of Priority Sector Lending.
Primary functions of MUDRA Bank are:
- Frame policy guidelines for micro/small enterprise MFIs
- Registration of MFIs
- Regulation of MFIs
- Promoting and regulating responsible finance in favour of client welfare, remove indebtedness and provide proper protection principles and recovery methods
- Accreditation and rating of MFIs
- Promoting right technology solutions for problems faced by MFIs and borrowers.
- Framing a robust architecture for Last Mile Credit Delivery to MSMEs under the umbrella of Pradhan Mantri Mudra Yojana.
Factual Information:
- Launched in 2015
- Details reveals the reality that only 1 crore 25 lakh people find employment in large industries, whereas small enterprises employ 12 crore people in the country. So MSME are very imprtant
- Mudra Bank is the vehicle to implement PM Mudra Yojana
Is it a statutory body as of now ?