Prime Minister Narendra Modi to launch MUDRA bank tomorrow

By Newsgram Staff Writer

The Prime Minister Narendra Modi will launch the Micro Units Development and Refinance Agency Ltd. (MUDRA) bank tomorrow at Vigyan Bhavan which will benefit 5.77 crore small business units.

Earlier, the Union Finance Minister Arun Jaitley in his Budget Speech said, "The creation of a Micro Units Development Refinance Agency (MUDRA) Bank, will be completed with a corpus of Rs.20,000 crore, and credit guarantee corpus of Rs.3,000 crore."

"MUDRA, to be set up through a statutory enactment, would be responsible for developing Micro-Finance Institutions (MFIs) which are in the business of lending to small business entities engaged in manufacturing, trading and service activities. It would also partner with state/regional level coordinators to provide finance to last mile financiers of small business enterprises," he added.

The roles for MUDRA bank would include laying down policy guidelines for micro enterprise financing business, registration of MFI entities, accreditation of MFI entities.