Millennium Post

FM proposes MUDRA to prop up MSME sectors

FM proposes MUDRA to  prop up MSME sectors
While announcing the Union Budget-2015, Jaitley said, 62 per cent of small business unit owned by SC, ST and OBC and these hard-working entrepreneurs find it difficult to access formal systems of credit. Therefore the government is proposing MUDRA Bank. This will refinance Micro-Finance Institutions through a Pradhan Mantri Mudra Yojana.”

“There are 5.77 crore small business units, mostly individual proprietorship. The government is committed to lend with priorities to SC and ST enterprises,” he said.

While claiming that MUDRA bank will boost the confidence of skilled workers, he said, “This will help them in expanding their activities. Just as we are banking the un-banked, we are also funding the un-funded.”

In the context of working capital requirement of a MSME, he said, “We are in the process of establishing an electronic Trade Receivables Discounting System (TReDS). This should improve the liquidity in the MSME sector significantly.”
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