Multiple banks. Different interest rates. Call it a "conflict of interest".
Micro Units Development and Refinance Agency Ltd., also referred to as MUDRA Bank is an initiative that was announced in the Union Budget of FY 2015-16. The company was registered in March 2015 and became operational from 7 April 2015. Under this scheme, the development of small businesses and entrepreneurs were focused upon. Several exceptions were made in order to satisfy client requirements by reaching areas where general banks were unable to reach.
Almost half the population of the nation lives in remote areas, where banking services such as savings accounts, credit cards, loans, and other such benefits are unheard of. The main motive of MUDRA Bank was to provide service to people in these remote areas. Here is a list of the offerings of MUDRA Bank:
There are three schemes under the Pradhan Mantri MUDRA Yojana (PMMY) based on the stage of development and funding needs of the borrowing organisation. Here is a brief description of these loans:
Considering the overall growth and development of the micro enterprises sector in India, the offerings of MUDRA Bank will help meet the requirements of entrepreneur/business segments.
A GST rate of 18% will be applicable on banking services and products from 01 July, 2017.
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