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’.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• 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.

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