New Delhi: Prime Minister Narendra Modi today launched MUDRA Bank which 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, Modi said after launching the Mudra Bank.
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. There are about 5.77 crore small business units.
Highlights from PM Modi’s Address
- Mudra Bank to help small business units
- It is expected to benefit 5.75 crore small business enterprises
- Must encourage self-employment
- Small businesses benefit 12 crore people
- Mudra Bank aims to fund the unfunded small entrepreneurs
- Need to strengthen savings habit in the country
- Big industrial houses provide jobs to only 1.25 crore people, while small entrepreneurs employ 12 crore people
- A little bit of help will go a long way in this sector
- Average debt of units in this sector is Rs 17,000
- If lending is increased to Rs 1 lakh, the sector will benefit immensely
- Only 11 lakh crore is invested in 5.77 crore small business units
- Agriculture, self-employment will be the biggest target groups of Mudra
- In a few years, the bankers will come to these entrepreneurs
- SIDBI is 25 years old now, SIDBI started the same way
- India should adopt globally successfully models on micro-finance
- 12 crore people in these small units have the potential to employ 25 crore people
- Mudra Bank will help to in economic progress of the country
Since the enactment for MUDRA is likely to take some time, it is proposed to initiate the Bank as a unit of SIDBI to benefit from SIDBI’s initiatives and expertise. MUDRA would also partner with state/regional level coordinators to provide finance to “Last Mile Financiers” of small/micro business enterprises.
Among others, MUDRA would benefit small manufacturing units, shopkeepers, fruits and vegetable sellers, hair saloon, beauty parlours, truck operators, hawkers, artisans in rural and urban areas with financing requirements up to Rs 10 lakh. The Finance Ministry said measures to be taken up by MUDRA are targeted towards mainstreaming young, educated or skilled workers and entrepreneurs including women entrepreneurs.
Bureau Report
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