Mudra Bank Ltd

8/19/2019 Mudra Bank Ltd

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M U D RA BAN K Ltd .And its

FU N CTIO N S


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BACKGROUND ABOUT THE

BANKM UDRA bank t b! "!t #$ % t' .2 b**n+ ,a$ta* t '!*$ - , +nan,n/ +- " t*!n - ! "'#* '!*$ *!!a/! #$ +- "

% ',' a,,#nt + 30 $!,!nt + na4"!5$t".Ina4" "- a** b#"n!""!" !- $*6 - ! t'an107 - **n % k!" 8a,,n/ t/!n- !nt "tat"t," 8n a ,#nt6 t'atbn/" a - **n n!% %k!" nt t'!% k+,! !!6 - nt'.


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Ab#t t'! bank T'!

G!n- !nt + Ina $$"a* t ,!at! aM , Unt" D!!*$- !nt A/!n,6(M UDRA)bank a" a "n/*! !/#*at + a**t6$!" + !ntt!" n t'! - ,+nan,! "$a,!

" a $"t! + t'! "!,t .It " *k!*6 t bn/ n #n+- !/#*atn ana ,! + ,n#,t + t'!"! !ntt!" .T'" % #* +a,*tat! t'! a$tn +

!"$n"b*! +nan,! $n,$*!" b6 a** *!n!"an n9t#n '!*$ $!!nt ""#!" +!*!!a/n/ + b%!".


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M U D RA BAN K

Micro Units Development andRefnance Agency Bank (or MUDRABank ) is a public sector fnancial

institution in India. It provides loansat low rates to micro fnanceinstitutions and nonbanking fnancialinstitutions w!ic! t!en provide creditto M"M#$s. It was launc!ed by %rimeMinister &arendra Modi on ' April()*+.

Mudra Bank stands ,or Micro Units


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O RIG IN O F M UD RA BAN K

1!e ,ormation o, t!e agency was initiallyannounced in t!e ()*+ Union budget o,India in 2ebruary ()*+. It was ,ormallylaunc!ed on ' April.

1!e MUDRA banks will be set up under t!e%rad!an Mantri MUDRA 3o4ana sc!eme.

A corpus o, Rs ()/))) crore and a credit

guarantee corpus o, Rs 5/))) crore. 1!elaunc! was t!e ,ulfllment o, anannouncement made earlier by t!e2inance Minister Arun 6aitley in !is 23 *+

*7 Budget speec!.


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M UDRA :ISION

“To be an integrated fnancial andsupport services provider parexcellence benchmarked with globalbest practises and standards or thebottom o the pyramid universe ortheir comprehensive economic and

social development.


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RO L! O F M U D RABANK

MUDRA Bank will set t!e policy guidelines ,ormicro8small enterprise fnancing business.

Registration/ accreditation8rating and

regulation o, M2I entitiesMUDRA bank will also o9er rig!t tec!nology

solutions ,or t!e last mile and development o,standardised set o, covenants concerned wit!

last mile lending to micro and smallenterprises

1!is bank will also ,ormulate and establis! a:redit ;uarantee sc!eme ,or o9eringguarantees to loans being e


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CO N TIN U !D..

It will aim to lower t!e cost o, fnance,rom =ast Mile 2inanciers to micro8smallenterprises many o, w!ic! are in t!ein,ormal sector

It will result in ;D%/ growt! and 4obcreation ,rom provision o, institutionalfnance to micro8small enterprise units.

It will also assist in creation o, a goodarc!itecture o, =ast Mile :redit Deliveryto micro companies as per t!e %rad!anMantri Mudra 3o4ana.


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CO N TIN U!D ..

1!e main ob4ectives o, Mudra Bank are/to encourage entrepreneurs and smallbusiness units to e"el,employment will be t!e ,ocus areas

o, Mudra Bank.


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R!S"O N SIBILITI!S O FM U D RA BAN K LTD .

=aying down policy guidelines ,or micro8small enterprisefnancing business.Registration and Regulation o, M2I -Micro2inanceInstitutions entities.Accreditation8rating o, M2I entities.

1o assist t!e lower income groups to develop and growt!eir small businesses.1o !elp to provide access to Institutional 2inance ,or "mallBusiness Units -"BU.2ormulating and running a credit guarantee sc!eme ,or

providing guarantees to t!e loans w!ic! are beinge


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CO N TIN U !D ..

1o give priority to ":8"1 enterprises inlending.

Increasing t!e access o, fnance to t!e un

banked and to also bring down t!e cost o,fnance.

MUDRA bank will also be responsible ,orregulating and refnancing all microfnance

institutions -M2Is w!ic! are in t!e businesso, lending to micro or small business entitiesengaged in manu,acturing/ trading andservices activities.


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micro a small business entitiesengaged in manuacturing tradingand services activities.

The bank would partner with state*regional level co#ordinators toprovide fnance to last mile fnancero small*micro business enterprises.


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sum o 's +,,,,crore ('s +,,billion)would be allocated to the !%&'"ank rom the money available rom

shortalls o priority sector lending orcreating a refnance und to providerefnance to the last mile fnancers .

nother 's -,,, cr. would be provided to

the !%&' "ank rom the "udget tocreate a credit guarantee corpus orguaranteeing loans being provided to themicro enterprises.


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RATE O? INTEREST CHARGED

BY M UDRA> !%&' is a refnancing agency which

will extend its unds to /T !ile0inancers to enable them to reachout to the sector .ccess to fnancein co1uction with rational price isgoing to e the uni2ue customer value

proposition o !%&'. 3t will use a variety o innovaitve

fnancing means including

technology to bring down the cost o


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O??ERINGS O? M UDRA AND

HO; IT ; I== ?UNCTION> %nder the aegis o 4radhan !antri !%&' 5o1ana(4!!5)!%&' has already createdits intial products*schemes. The

intervention hve been named (/ishu )(6ishor) and(Tarun)to signiy the stage ogrowth *development and unding needso he benefciary micro unit *entrepreneur

and also to provide a reerence point orthe next phase o graduation *growth tolook orward to.


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O??ERINGS CONT...

The fnancial limit o these schemesare#

. /hishu 7 covering loans upto 's8,,,,*#

". 6ishor 7 covering loans above 's8,,,,*# and upto 's 8 lakh.

9. Tarun 7 covering loans above 's 8lakh to 's :, lakh.


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O??ERINGS CONT...

!%&';/ delivery channel is conceived tobe through the route o refnance primarilyto "anks *


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THANKYOU....

Mudra Bank Ltd

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