Which of the following are true about Micro Units Development Refinance Agency MUDRA Bank envisaged ...........

Economic Affairs Types of Banks and Banking

Which of the following are true about Micro Units Development Refinance Agency (MUDRA) Bank envisaged in Budget 2015-16?

1. It is a refinance institution.

2. It is initially being set up as a subsidiary of SIDBI.

3. The main objective is to provide funds to all firms including non-corporate small business sector.

Codes

1 and 3

1 and 2

1, 2 and 3

All of the Above

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Explanation:

3rd statement is incorrect.
The MUDRA Bank would primarily be responsible for –

1) Laying down policy guidelines for micro/small enterprise financing business
2) Registration of MFI entities
3) Regulation of MFI entities
4) Accreditation /rating of MFI entities
5) Laying down responsible financing practices to ward off indebtedness and ensure proper client protection principles and methods of recovery
6) Development of standardised set of covenants governing last mile lending to micro/small enterprises
7) Promoting right technology solutions for the last mile
8) Formulating and running a Credit Guarantee scheme for providing guarantees to the loans which are being extended to micro enterprises
9) Creating a good architecture of Last Mile Credit Delivery to micro businesses under the scheme of Pradhan Mantri Mudra Yojana