According to the NSSO survey of 2013, there are 5.77 crore small business units, mostly individual proprietorships, which run small manufacturing, trading or services activities. Most of these ‘own account enterprises’ are owned by people belonging to Scheduled Caste, Scheduled Tribe or Other Backward Classes. Only 4% of such units get institutional finance. Providing access to institutional finance to such micro/small business units would turn them into strong instrument of GDP growth and also employment.
Micro Finance is an economic development tool whose objective is to assist the poor to work their way out of poverty. It covers a range of services which include, in addition to the provision of credit, many other services such as savings, insurance, money transfers, counseling etc. The players in the Micro Finance sector can be qualified as falling into 3 main groups:- the SHG-Bank linkage model started by NABARD, the Non Banking Finance companies and the others including Trusts, Societies etc.
The government proposes to set up a Micro Units Development and Refinance Agency (MUDRA) Bank through a statutory enactment. This Bank would be responsible for regulating and refinancing all Micro-finance Institutions (MFI) which are in the business of lending to micro/small business entities engaged in manufacturing, trading and services activities. The Bank would partner with state level/regional level co-ordinators to provide finance to Last Mile Financer of small/micro business enterprises.
The MUDRA Bank would primarily be responsible for –
1) Laying down policy guidelines for micro/small enterprise financing business
2) Registration of MFI entities
3) Regulation of MFI entities
4) Accreditation /rating of MFI entities
5) Laying down responsible financing practices to ward off indebtedness and ensure proper client protection principles and methods of recovery
6) Development of standardised set of covenants governing last mile lending to micro/small enterprises
7) Promoting right technology solutions for the last mile
8) Formulating and running a Credit Guarantee scheme for providing guarantees to the loans which are being extended to micro enterprises
9) Creating a good architecture of Last Mile Credit Delivery to micro businesses under the scheme of Pradhan Mantri Mudra Yojana
A sum of Rs 20,000 crores would be allocated to the MUDRA Bank from the money available from shortfalls of Priority Sector Lending for creating a Refinance Fund to provide refinance to the Last Mile Financers. Another Rs 3,000 crore would be provided to the MUDRA Bank from the budget to create a Credit Guarantee corpus for guaranteeing loans being provided to the micro enterprises.
|
Read,Write & Revise.Minimum reading & maximum learning
2 March 2015
Micro Units Development and Refinance Agency (Mudra) Bank
Subscribe to:
Post Comments (Atom)
Featured post
UKPCS2012 FINAL RESULT SAMVEG IAS DEHRADUN
Heartfelt congratulations to all my dear student .this was outstanding performance .this was possible due to ...
-
India, US agree ‘in principle’ to sign logistics support pact Both nations seek to initiate discussions on submarine safety, anti-submar...
-
India building a supercomputer juggernaut The as-yet-unnamed giant could win a spot in the top ten global list, and improve weather f...
-
Thousands of Amur falcons, small birds of prey that undertake one of the longest migrations have started arriving in Wokha district in Nag...
-
A SpaceX rocket blasted off on Wednesday to put a U.S. satellite into deep space, where it will keep tabs on solar storms and image Earth ...
-
Ist women IFS OFFICER Trail Blazers: Why should you always remember these 12 women IFS officers HEARD of Madam Muthamma, India’s first IFS?...
-
A reduction in grievous crimes like murder, robbery and dacoity has contributed greatly to changing the popular perception on the law and...
-
India was ranked 131 in the 2016 Human Development Index (HDI) among the 188 countries. India scored 0.624 and was placed in medium human ...
-
UKPCS 2016 MAINS TEST SERIES SCHEDULE. STARTING FROM 14th may (English & Hindi medium Separately ) EVERYONE HAS TO DO WRITING ...
-
India, which is now the ninth largest aviation market in the world, will overtake the UK to take the third position in over 15 years, af...
-
t took Ira Singhal, this year’s Indian Administrative Services (IAS) exam topper, four years to get to that position. Singhal’s was a spec...
No comments:
Post a Comment