ALL YOU NEED TO KNOW ABOUT MUDRA | DEFINITION | OBJECTIVES

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MICRO UNITS DEVELOPMENT AND REFINANCE AGENCY LTD (MUDRA)

Mudra was announced by the Finance Minister in his FY 15-16 Budget . On 8 April 2015, the pleasure moment came when The Prime Minister launched the Micro Units Development and Refinance Agency Ltd (MUDRA) with a corpus of Rs 20,000 crore and a credit guarantee corpus of Rs 3,000 crore.

As we know In India, most of the citizens especially in rural areas are not getting the benefit of formal banking system. Most of the individuals are still dependent on the local money lenders & the rates of the interest of their loans are very high. Therefore they never utilized the facility of insurance, loans and financials to grow and establish their micro business.

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PRINCIPLES OBJECTIVES OF MUDRA BANK

• Establish proper control for the lender & the borrower so that for the both parties the purpose for the transactions can be meet out.
• Providing finance & Credits to Micro Finance Institutions (MFI) so that they can lend the money to small business, Self-help groups (SHPs) & Individuals who do not have any source for the surviving.
• Implement a performance basis rating in the MFIs to evaluate which MFIs satisfy the meet of the borrower which will create competiveness among the MFIs for the benefit of the borrower.
• Provide a systematic & structured guideline or instructions to the borrower to direct him to follow right step for the business to avoid the business s failure.
• Establish a proper system to monitor the effective & efficient utilization for the distributed capital.
• Make a structure for the providing the benefit of the MUDRA Yojana to the last mile credit delivery system to small and micro businesses

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WHETHER THE MUDRA WILL BE SUCCESSFUL IN INDIA?

Yes it will definitely succeed. As we aware that majority of the Indians is poor and live in the rural areas. Most of them are not getting the basic facilities which are required for the living standards. Many people do not have employment so these are left to their own creativity to feed themselves and survive with no any experience, training & education. Now think if these enterprises provide some guidance, support, trainings & financial assistance, the potential to get an immediate jump in not only in GDP but also the poor citizen lives in the rural areas will live his life be an independent, employed & prosperity . At last, we can say MUDRA bank is in place for the benefit of the needy person for the survive. Hope you got much Idea about Mudra .

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