MUDRA Bank launched by PM Narendra Modi | Assets | Details | Newzstock

MUDRA Bank launched by PM Narendra Modi | Assets | Details | New Bank in India called MUDRA

1. MUDRA bank will be responsible for refinancing micro-finance institutions in the business of lending to small entities.

2. PM Narendra Modi on Wednesday announced enhanced input subsidy relief for farmers in distress. 

3. Farmers would now be eligible for input subsidy if 33 per cent of their crop was damaged, as opposed to 50 per cent or more, which was the norm till now. Further, the input subsidy given to distressed farmers would be enhanced by 50 per cent of the existing amounts, Mr. Modi was speaking at the launch of Mudra (Micro Units Development and Refinance Agency) Bank under the Pradhan Mantri Mudra Yojana. 

4. The bank will have a corpus of Rs. 20,000 crores and credit guarantee of Rs. 3000 crore. It will be responsible for refinancing micro-finance institutions in the business of lending to small entities. 

5. The Prime Minister expressed concern over the problems faced by farmers due to abnormal weather over the past year. “Helping the farmer in this time of distress is our responsibility, and therefore, the Government had sent teams of Central Ministers to the affected areas to assess the extent of damage.

6.The Central and State governments, banks and insurance companies would all do their utmost to provide relief to farmers. 

7. Banks were asked to restructure loans of farmers hit by unseasonal rains and insurance companies advised to pro-actively settle claims.

8. While big industrial houses provided jobs to only 1.25 crore people, small entrepreneurs have given employment to nearly 12 crore people. The India Post network would be used for increasing access to formal financial system.

9.Union Finance Minister Arun Jaitley said the Mudra Bank was a step in the right direction of ‘funding the unfunded’. He had proposed the bank in his budget speech in February.

10. Mudra Bank was being set up through a statutory enactment. It would be responsible for developing and refinancing through the Yojana all Micro-finance Institutions (MFIs), which were lending to micro and small business entities engaged in manufacturing, trading and service activities. 

11.The release said the bank would partner with state and regional level coordinators to provide finance to last mile financiers of small and micro business enterprises. Its proposed role included laying down policy guidelines for micro enterprise financing business; registration, accreditation and rating of MFI entities.

12.It would also follow responsible financing practices to ward off over indebtedness and ensure proper client protection principles and methods of recovery. These measures were targeted at mainstreaming young, educated or skilled workers and entrepreneurs, including women entrepreneurs, the release noted.

“A vast part of the non-corporate sector operates as unregistered enterprises and formal or institutional architecture has not been able to reach out to meet its financial requirements…Providing access to institutional finance to such micro, small business units, enterprises will not only help in improving the quality of life of these entrepreneurs but also turn them into strong instruments of GDP growth and employment generation,” the release added.

Full Form of MUDRA BANK:-

Micro Units Development Refinance Agency