India’s Prime Minister Narendra Modi on Wednesday launched the MUDRA (Micro Units Development and Refinance Agency) Bank which will provide credits of up to Rs 10 lakh to small entrepreneurs in the country, trusting that it will promote growth and create jobs.
The new financial institution will act as a regulator for micro-finance institutions.
Modi said, Mudra Bank will have a corpus of Rs 20,000 crore.
“After banking the un-banked with the Jan Dhan Yojana, now is the right time to fund the unfunded,” the Prime Minister said at the launch of the bank.
As reports state, the government’s new move is aimed at benefiting around 58 million small businesses across the nation, as the bank is planning to provide loans for small manufacturing units, agro-entrepreneurs and other small business units in both rural and urban territories.
