By Newsgram Staff Writer

Prime Minister Narendra Modi will launch MUDRA (Micro Units Development and Refinance Agency) Bank on 8th April at Vigyan Bhawan, New Delhi in the presence of Finance Minister Shri Arun Jaitley.

In order to decide the modalities of functioning of MUDRA Bank, a meeting of stake holders consultation was held on Wednesday in New Delhi under the Chairmanship of Dr. Hasmukh Adhia, Secretary, Department of Financial Services, in which all stakeholders, including cross section of micro finance institutions, NBFCs, Banks, NABARD, SIDBI and RBI representatives were present.

The Union Finance Minister in his Budget Speech for 2015-16 had announced formation of MUDRA Bank. He said that our government firmly believes that development has to generate inclusive growth.

While large corporate and business entities have a role to play, this has to be complemented by informal sector enterprises which generate maximum employment. There are some 5.77 crore small business units, mostly individual proprietorship, which run small manufacturing, trading or service businesses. 62% of these are owned by SC/ST/OBC.

MUDRA Bank will refinance Micro-Finance Institutions through a Pradhan Mantri Mudra Yojana. In lending, priority will be given to SC/ST enterprises. "These measures will greatly increase the confidence of young, educated or skilled workers who would now be able to aspire to become first generation entrepreneurs; existing small businesses, too, will be able to expand their activities. Just as we are banking the un-banked, we are also funding the un-funded," Jaitley said.