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. However, only 4% of such units get institutional finance. Therefore,
Mudra Bank has a number of roles and responsibilities. Apart from the primary responsibility to finance the Non – Corporate Small Business Sector (NCSBS), it also has to refinance the MFI’s; setting down policies and guidelines for MFIs, and regulating and rating MFIs. Thus, in the form of MUDRA, we have one institution that is
Micro Units Development and Refinance Agency (MUDRA) Ltd. Bank was launched on 8 April, 2015 as a subsidiary of SIDBI. It has been registered as an NBFC with the Reserve Bank and within a year, the government intends to come out with a legislation to convert the NBFC into a bank. The aim MUDRA is to