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What does the MUDRA Bank stand for?
Macro Units Development and Reserve Agency
Micro Units Development and Reserve Agency
Macro Units Development and Refinance Agency
Micro Units Development and Refinance Agency
Micro Units Development and Refinance Agency
MUDRA stands for Micro Units Development and Refinance Agency. It was established by the Government of India in 2015 to provide funding to the non-corporate, non-farm small/micro enterprises.
MUDRA stands for Micro Units Development and Refinance Agency. It was established by the Government of India in 2015 to provide funding to the non-corporate, non-farm small/micro enterprises.
MUDRA Bank was launched under the PMMY (Pradhan Mantri MUDRA Yojana) on 8 April 2015 by the Prime Minister of India.
It operates as a subsidiary of the Small Industries Development Bank of India (SIDBI).
Loans are categorized into three products: Shishu (up to 50,000), Kishor (50,000 to 5 lakh), and Tarun (5 lakh to 10 lakh).
The primary objective is to 'fund the unfunded' and promote entrepreneurship at the grassroots level.
The agency does not lend directly to micro-enterprises but refinances last-mile financiers such as banks, NBFCs, and MFIs.
It is not a traditional bank but a non-banking financial institution under the MUDRA Act.
Option A and B are incorrect because the agency's primary function is 'Refinance' rather than 'Reserve', and it targets 'Micro' instead of 'Macro' units.
D is correct тАФ MUDRA stands for Micro Units Development and Refinance Agency, which acts as a refinancing institution for small businesses.
When studying MUDRA, compare it with the Stand-Up India scheme, which specifically targets SC/ST and women entrepreneurs for loans between 10 lakh and 1 crore.
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