Prime Minister Narendra Modi set to redefine micro-finance institutions with the launch of Rs 20,000 crore MUDRA (Micro Units Development and Refinance Agency) Bank on April 8.
The MUDRA Bank is expected to have a corpus of Rs 20,000 crore and a credit guarantee corpus of Rs 3,000 crore, as announced by Finance Minister Arun Jaitley in the Union Budget 2015-16.
“To work out the modalities of functioning of MUDRA Bank, a stakeholders’ consultation has been held. Presided over by Financial Services Secretary Hasmukh Adhia, the meeting was attended by representatives of micro finance institutions, NBFCs, Banks, NABARD, SIDBI and RBI,” said the Finance Ministry.
Based on the consultation which took place yesterday as well as the consultation which will happen in the days to come, the exact modalities of functioning of MUDRA Bank and its activities would be framed before the formal launch of MUDRA Bank on April, 8 by the Prime Minister and the same would be unveiled on the day of launch.
MUDRA Bank will refinance micro-finance institutions through a Pradhan Mantri Mudra Yojana and the priority would be given to SC/ST enterprises in terms of lending.