With respect to the ldquo Micro Units Development and Refinance Agency MUDRA Bank rdquo consider the...........

Economic Affairs Financial Institutions

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With respect to the “Micro Units Development and Refinance Agency (MUDRA) Bank”, consider the following statements:

1. It has been set up as a subsidiary of the SIDBI.

2. It provides financial support to the individuals and the corporates who are engaged in micro-enterprises.

3. Loans are available for agricultural activities and activities allied to agriculture.

Which of the statements given above is/are correct?

1 only

3 only

1 and 2 only

2 and 3 only

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Explanation:

The Micro Units Development and Refinance Agency (MUDRA) was set up as a refinance agency for developing and refinancing all micro-enterprises, engaged in manufacturing, trading and service activities.

It aims to provide financial support to those banks and micro finance institutions which are engaged in lending to the micro-enterprises.
It has been set up as a subsidiary of the SIDBI (The Small Industries Development Bank of India).
It gives loans up to Rs. 10 lakhs, while loans of higher amount are given by the SIDBI.
MUDRA loans are available for non-agricultural activities upto Rs. 10 lakhs and activities allied to agriculture, such as dairy, poultry, bee-keeping etc., are also covered.

MUDRA issues a MUDRA Card which permits access to working capital through ATMs and card machines. There are 3 types of loans under the PM MUDRA Yojana:
Shishu , Kishore , Tarun (from Rs.5,00,001 to Rs.10,00,000).