9-apr

MUDRA bank launched : "funding the unfunded"

1)      Pradhan Mantri Micro Units Development and Refinance Agency Ltd (MUDRA) bank with a corpus of Rs 20,000 crore and credit guarantee of Rs. 3,000 crore was launched by PM.

2)      The bank will be responsible for refinancing microfinance institutions in the business of lending to small entities.

3)      The postal network would be used for increasing access to the formal financial system.

4)      While big industrial houses provide jobs to only 1.25 crore people, small entrepreneurs have given employment to nearly 12 crore people.

5)      The bank will be responsible for developing and refinancing all microfinance institutions (MFIs) which are in the business of lending to micro and small business entities engaged in manufacturing, trading and service activities.

6)      It will also partner with State and regional-level coordinators to provide finance to last-mile financiers of small and micro business enterprises.

7)      Its role includes laying down policy guidelines for micro enterprise financing business, registration, accreditation and rating of MFI entities.

8)      The agency will also lay down responsible financing practices to ward off over-indebtedness and ensure proper client protection principles and methods of recovery.

9)      These measures are targeted towards mainstreaming young, educated or skilled workers and entrepreneurs, including women entrepreneurs.

http://www.thehindu.com/todays-paper/tp-national/pm-announces-enhanced-input-subsidy/article7082758.ece -------------------------------------------------------------------------------------------------------------------------------------