Is It a Bank?

Consumer Voice - - Mudra -

It is im­por­tant to know that MUDRA is not a di­rect lend­ing in­sti­tu­tion. It pro­vides re­fi­nance sup­port to in­ter­me­di­aries who are in the busi­ness of lend­ing for in­come-gen­er­at­ing ac­tiv­i­ties in the non­farm sec­tor. Specif­i­cally, MUDRA is re­spon­si­ble for re­fi­nanc­ing all last-mile fi­nanciers such as NBFCs, so­ci­eties, trusts, Sec­tion 8 com­pa­nies (for­merly Sec­tion 25), co-op­er­a­tive so­ci­eties, small banks, sched­uled com­mer­cial banks, and re­gional ru­ral banks that are en­gaged in lend­ing to mi­cro/small busi­ness en­ti­ties en­gaged in man­u­fac­tur­ing, trad­ing and ser­vices ac­tiv­i­ties. MUDRA may also part­ner with state/re­gional-level fi­nan­cial in­ter­me­di­aries. Banks and MFIs can draw re­fi­nance un­der the scheme af­ter be­com­ing mem­ber-lend­ing in­sti­tu­tions (MLIs) of MUDRA. MUDRA Bank is be­ing set up through a statu­tory en­act­ment and it will be re­spon­si­ble for de­vel­op­ing and re­fi­nanc­ing through the Prad­han Mantri MUDRA Yo­jana (PMMY). MUDRA will act as a reg­u­la­tor of all mi­cro­fi­nance in­sti­tu­tions. Pend­ing en­act­ment of an act for MUDRA Bank, a non-bank­ing fi­nan­cial com­pany as MUDRA Ltd has been set up as a sub­sidiary of Small In­dus­tries De­vel­op­ment Bank of In­dia (SIDBI).

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.