Prime Minister Narendra Modi on 8 April 2015 launched the Micro Units Development and Refinance Agency Ltd. (MUDRA) Bank to fund the small entrepreneurs.
The Bank was launched under the ambitious Pradhan Mantri Jan Dhan Yojana (PMJDY). The bank will provide credit of up to 10 lakh rupees to small entrepreneurs and act as a regulator for Micro-Finance Institutions (MFIs).
It was set up through a statutory enactment. It would be responsible for developing and refinancing all Micro-finance Institutions (MFIs) which are in the business of lending to micro / small business entities engaged in manufacturing, trading and service activities.
The concept of MUDRA Bank goes beyond credit only approach and offers a credit plus solution for these enterprises spread across the country.
The role of MUDRA Bank
Products offered by MUDRA Bank
The bank will initially offer products like Shishu, Kishor and Tarun to differentiate the stage of growth and funding needs of the beneficiary entrepreneur.
Union Finance Minister Arun Jaitley had proposed the creation of a Micro Units Development Refinance Agency (MUDRA) Bank, with a corpus of 20000 crore rupees and credit guarantee corpus of 3000 crore rupees during the presentation of Union Budget 2015-16 on 28 February 2015.
Who: MUDRA Bank
When: 8 April 2015