Prime Minister Modi Launches MUDRA Bank, Expected to Benefit 5.77 crore Microfinance Institutions in India

Wednesday, April 8, 2015

Prime Minister Narendra Modi on Wednesday launched MUDRA Bank under Pradhan Mantri Jan Dhan Yojana. This will provide credit of up to Rs 10 lakh to small entrepreneurs and act as a regulator for ’Micro-Finance Institutions’ (MFIs).

“Big industrial houses provide jobs to only 1.25 crore people, while small entrepreneurs employ 12 crore people. MUDRA Bank aims to fund the unfunded small entrepreneurs; need to strengthen savings habit in the country,” Modi said.

He announced higher compensation for crop damage and eased criteria for them to avail government support.

“Farmers are going through various problems due to seasonal calamities. We have told banks and insurance companies to provide help,” he added.

The roles envisaged for MUDRA include laying down policy guidelines for micro enterprise financing business and registration of MFI entities as well as their accreditation and rating.

Source: IBNLive (link opens in a new window)