Pradhan Mantri Mudra Yojana

Pradhan Mantri Mudra Yojana

Under the Micro Units Development and Refinance Agency (MUDRA) Bank is a new institution being set up by Government of India for development and refinancing activities relating to micro units. It was announced by the Finance Minister while presenting the Union Budget for FY 2015-16. The purpose of MUDRA is to provide funding to the non corporate small business sector.Loans worth about Rs 1 lakh crore have been sanctioned to small entrepreneurs under the Pradhan Mantri MUDRA Yojana.MUDRA was built up as an auxiliary of SIDBI bearing an introductory amount of Rupees 5,000 crores to give funding to all nationalized banks looking for financing small businesses under PMMY (Pradhan Mantri Mudra Yojana).In 2016, GOI approved conversion of Mudra Ltd (Pradhan Mantri Micro Units Development Refinance Agency), into a bank.