MUDRA Bank- Bank for regulation of microfinance lending
Q. Name the bank announced to be setup in the budget for regulating and refinancing all Micro-finance Institutions (MFI) which are in the business of lending to micro/small business entities engaged in manufacturing, trading and services activities?- Published on 20 Jul 15
a. Micro Bank
b. SIDBI Bank
c. MUDRA Bank
d. Micro-Finance Bank
ANSWER: MUDRA Bank
The government announced Micro Units Development and Refinance Agency (MUDRA) Bank to be set up with a capital of Rs 20,000 Crore for regulating and refinance all micro-finance institutions. Additional 3,000 Crore rupees would be provided to the MUDRA Bank from the budget to create a Credit Guarantee corpus for guaranteeing loans being provided to the micro enterprises.