New Delhi, 8 April 2015: Prime Minister Narendra Modi will launch Micro Units Development & Refinance Agency Ltd. (MUDRA) today at Vigran Bhawa in New Delhi. Finance Minister Arun Jaitley and Minister of State for Finance Jayant Sinha will also be present.
The objectives of MUDRA are-
- To be an integrated financial and support service provider for the micro enterprises and help in economic and social development
- Creating a good architecture of Last Mile Financiers to micro businesses
- Promoting right technology solutions for financial delivery to the last mile
- Providing doorstep credit at lower cost
The Prime Minister, Narendra Modi, today said that supporting the small entrepreneurs of India is the biggest way to help the Indian economy grow and prosper. He was speaking at the launch of the Pradhan Mantri MUDRA (Micro Units Development and Refinance Agency) Yojana in New Delhi. Stressing the contribution of small entrepreneurs in the economy, the Prime Minister expressed confidence that within a year’s time, the major banks would also adopt the MUDRA model.
“Millions of common men and women of this country, who run small business, have almost remained outside the net of formal institutional finance, in spite of their large contribution to the economy. MUDRA is our innovation of funding the unfunded”, commented PM Narendra Modi.
The Prime Minister said that while there are a number of facilities provided for the large industries in India, there is a need to focus on these 5 crore 75 lakh self-employed people who use funds of Rs 11 lakh crore, with an average per unit debt of merely Rs 17,000 to employ 12 crore Indians. He said that these facts, when brought to light, led to the vision for MUDRA Bank.
MUDRA is a subsidiary of Small Industries Development Bank of India.