File photo: Prime Minister Narendra Modi
Prime Minister Narendra Modi on Wednesday launched MUDRA Bank, or the Micro Units Development and Refinance Agency Bank, which will provide credit of up to Rs 10 lakh to small entrepreneurs and act as a regulator for 'micro-finance institutions (MFIs). Mudra Bank will have a corpus of Rs 20,000 crore.
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
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