To help small and medium enterprises via refinancing, Indian Government will launch Micro Units Development and Refinance Agency (MUDRA Bank). The Government made this announcement during the Union-Budget 2015-16.
As per a Trak.in report, the new bank for entrepreneurs will have a corpus of Rs 20,000 crore and will provide refinance and assistance to those financers who finance SMEs and Entrepreneurs in India. This bank will act as regulator and refinancer to MFI (Micro Finance Intuitions) which will lend to SMEs to help them grow. As of now, Mudra Bank will only assist to those MFIs, and investors who are investing in the sectors such as manufacturing, trading and services niche.
Also, this bank will reach out to the “last mile financier of small/micro business enterprises” via various statutory enactments. And, it will help them manage their finances, increase investments and refinance SMEs loan for better action and more results.