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Mudra Bank panel to meet in Delhi tomorrow for second time

Press Trust of India  |  Mumbai 

The government panel entrusted with the task of setting up the Micro Units Development and Refinance Agency (Mudra Bank) will hold its second meeting in the capital tomorrow, a top official said here today.

"At tomorrow's meeting to be held in New Delhi, the committee headed by Finance Ministry Joint Secretary Alok Tandon and comprising representatives of SIDBI, Nabard and the Indian Banks Association (IBA), among others, will discuss the draft Bill to set up the Mudra Bank," said Mudra Bank chief executive Jiji Mammen, who was here to sign a general refinance agreement with the state-owned Dena Bank.

Mammen said Mudra Bank has already received a non-banking Finance Company (NBFC) licence from the Reserve Bank of India (RBI) and is registered under the Companies Act.

Once the draft is finalised, it will go to Parliament for final approval to make Mudra Bank operational, he said.

Mudra Bank, with a seed capital of Rs 250 crore, plans to finance MSMEs to the tune of Rs 20,000 crore through banks by March.

"We plan to finance MSMEs by way of refinancing banks to the tune of Rs 20,000 crore this financial year. Currently, the Mudra Bank has a seed capital of Rs 250 crore only. However, funds to meet the target of financing Rs 20,000 crore through banks to MSMEs will come from SIDBI, which owns Mudra entirely as of now," he said.

Mammen also said the Rs 20,000-crore financing plan will be part of the Rs 1 trillion MSME initiative under the Pradhan Mantri Mudra Yojana (PMMY).

Mudra Bank was launched by Prime Minister Narendra Modi on April 8.

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First Published: Wed, June 24 2015. 21:57 IST