Abstract
In a Developing country having large population like India, small businesses play an important role economy but also by providing employment to a large no of people. After identifying the importance of self-employment people and small business units, government of India launched MUDRA Yojana to address the financial and other constraints. This paper is an attempt to know about the MUDRA Yojana and its key objectives. The paper highlights the importance and the role of MUDRA bank towards the small business units.
Introduction
Finance is very effective tool in enhancing economic opportunity and fighting poverty. Financial Inclusion is a much cherished policy in India and our economic policy has always been driven by an underlying intent of a sustainable and inclusive growth. The concept of financial inclusion is introduced first time by the Governor of RBI Shri Y.V.Reddy in 2005. Financial Inclusion means process of ensuring access to appropriate financial services where needed by all sections of the society such as weaker section and low income groups at an affordable cost in a transparent manner. . Government of India (GOI) has been Introduced a number of financial inclusion initiatives Pradhan Mantri Mudra Yojana (PMMY),is one of them Micro Units Development & Refinance Agency Limited (MUDRA) and Pradhan Mantri MUDRA Yojana (PMMY) were launched on 08 April 2015 by the Hon’ble Prime Minister, Shri Narendra Modi. It was decided that MUDRA will monitor the progress of PMMY. The National Bank for Agriculture & Rural Development (NABARD) was also advised to closely monitor the progress of RRBs, as RRBs are under supervisory domain of NABARD.The guidelines of PMMY issued by Department of Financial Services (DFS), GOI indicated that all banks are required to lend to micro enterprises engaged in manufacturing, processing, trading and service sector activities, for a loan upto ` 10 lakh. Further, it was also advised that the loan may be given in threecategories, i.e. Loan upto ` 50,000 under Shishu; ` 50,000 to ` 5 lakh under Kishor; and ` 5 lakh to ` 10 lakh under Tarun
Copyright
Copyright © 2025 Dr.Abhay Gupta. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.