Friends.. As you Prime Minister Narendra Modi on 8 April 2015 launched the Mudra Bank to help small entrepreneurs get loan to start a business. With much hype we read/heard in newspapers and media the word 'Mudra Bank'. But we know still many of you might be wondering what this bank is all about..as we were to be frank :). This post is for those.. Let's look at what this Mudra Bank is?
Facts you should know about MUDRA BANK
1) This Bank is another leap forth to accelerate the ‘Make in India’ process launched by Prime Minister, Narendra Modi on 25 September 2014.
2) What does MUDRA stand for? - Mudra Bank stands for Micro Units Development Refinance Agency (MUDRA). Mudra in Hindi means monetary capital.
3) Mudra is a bank that is set up solely to encourage small entrepreneurs from urban and rural regions. The initiative has been taken with an intention to bring entrepreneurs from across the country into mainland business.
4) How is Mudra Bank set up? - The bank launched by the Prime Minister, Mudra is being set up through a statutory enactment. Mudra Bill will be brought into the Parliament within 6-12 months and it will incorporate the provisions of the Micro Finance Institutions (MFI) Bill. It has been registered as a company and an NBFC under the Reserve bank of India.
5) What is the aim of MUDRA Bank? - Aim is to provide financial assistance to the "unfunded" small entrepreneurs who provide employment to a large number of people.
5) Under which Yojana Mudra Bank is set up? - Pradhan Mantri Micro Units Development Refinance Agency (MUDRA) Yojana
6) Who is the CEO of Mudra Bank? - One of the Chief General Managers of Nabard, Jiji Memon, has been appointed CEO of the institution.
7) Mudra bank aims at catering to the needs of as many as 5. 77 crore small business spread across India.
8) Mudra Bank will be set up with a corpus of Rs.20,000 crore and a credit guarantee fund of Rs.3,000 crore. It can lend between Rs 50,000 and Rs 10 lakh to small entrepreneurs.
9) As the objective is to encourage small businessmen, the bank will not just provide monetary help but will nurture them through different stages of growth and development of businesses as Sishu, Kishor and Tarun.
10) What is Sishu? - Nascent businesses which are just starting up will be considered as Sishu businesses. Sishus loan cover will be up to Rs.50, 000.
11) What is Kishor? - As the industries witness their initial profits they are regarded as Kishor industries. In this phase they are eligible for a loan ranging from 50, 000 to 5, 00, 000 lakh.
12) What is Tarun? - This is the final and progressive stage which if achieved by the businesses will be eligible for loan up to 10 lakh.
13) Background of setting up this Bank? - Union Finance Minister Arun Jaitley had proposed the creation of a Micro Units Development Refinance Agency (MUDRA) Bank during the presentation of Union Budget 2015-16 on 28 February 2015.