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Case Code: CLECO004
Case Length: 4 pages 
Period: -  
Pub Date: 2016
Teaching Note: Not Available
Subject : Economics
Price:Rs.100
Organization :Mudra Bank
Industry : -
Countries : -

Mudra Bank: Crucial for the Success of `Make in India`?

 

ABSTRACT

Mudra Bank is an initiative by the Prime Minister of India, Narendra Modi, to provide the much needed funding for startups and many small businesses. It is hoped that the innovative and speedy loan disbursement model will revolutionize and invigorate the startups and other small enterprises. However, critics question the need for such an initiative when a financial infrastructure is already in place in the form of Sidbi and Nabard.

The case talks about the credit alternatives for small enterprises before Mudra and about its model and progress since its launch. It gives scope for a debate on its role in the Prime Minister’s pet initiative ‘Make-In-India’. ...
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Issues:

  • Understand the need for Mudra Bank.
  • Analyze Mudra Bank’s model and debate whether it is a game changer in financing NCSBS (Non-Corporate Small Business Sector).
  • Debate the role of Mudra Bank in the success of ‘Make-in-India’ initiative.
Introduction
In July 2016, The Micro Units Development and Refinance Agency (Mudra) launched a new module on its portal that broadened its reach, to the remotest village in India. The new module provided small entrepreneurs of rural India access to the Mudra loan scheme to start and grow their business. By July 2016, the loans disbursed totaled Rs. 1.33 trillion, exceeding the target of Rs. 1.22 trillion for the half year April to September 2016. By March 2017, the loan disbursement was predicted to exceed the targeted Rs. 1.80 trillion..

Keywords

PMJDY: Pradhan Mantri Jan Dhan Yojana,NCSBS: Non-Corporate Small Business Sector,PKSF: Palli Karma-Sahayak Foundation,NSSO: National Sample Survey Office ,NIMSME: National Institute of Micro, Small & Medium Enterprises,Shishu,Kishor,Tarun,Mudra Card,Beneficiary,Aadhar Card,Make-In-India,Sidbi,Nabard



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