MUDRA Bank To Cater To 5.77 Core Small Business Units : Jiji Mamman

19 May, New Delhi

The Pradhan Mantri MUDRA Yojana (PMMY), launched by the Prime Minister Narendra Modi last month will be responsible for business developing and refinancing. The MUDRA bank will cater to 5.77 crore small business units that are spread all over India which currently find it difficult to access credit from the regular banking system.

In an Interview to AIR, the CEO of MUDRA Bank JiJi Mamman said this will help about 12 crore people from various unorganized sector in the country, whose contribution is huge for the country’s GDP.

He said, “New Financial institute will take care of the financial needs of a large section of people who are involved in the micro enterprise activities like road side vendors’ chaivalaas, vegetable vendors, and small business activities. Small traders, small manufacturing unit, small service sectors activities for which the credit requirement are not more than ten lakhs. So it is a high employment generating activity it also add to the GDP of the in a substantial way. So this segment it has never been getting adequate support from the formal credit system.”

MUDRA bank has been in existent for the last one month, it has already enlisted around 90 partner institutions, who would be a partnering with MUDRA for extending the financial credits. This initiative will add more employment and prosperity to the country, he added.

“We hope that this initiative of the government is going to be a big success and will help the large section of people. To make their existing units bigger and also bring more people in to these kind of enterprise activities for that more employment can be created , more income can be created and will be much more prosperity and development all around the country”.