BANKING AFFAIRS

Detailed explanation-1: -MUDRA has been initially formed as a wholly owned subsidiary of Small Industries Development bank of India (SIDBI) with 100% capital being contributed by it. Presently, the authorized capital of MUDRA is 1000 crores and paid up capital is 750 crore, fully subscribed by SIDBI.

Detailed explanation-2: -MUDRA is a subsidiary of SIDBI. SIDBI offers a refinancing scheme to raise the position of Primary Lending Institutions as a dedicated lender in order to enable the flow of credit to the MSME sector. MUDRA helps provide refinancing to the Non-Corporate Small Business Sector (NCSB).

Detailed explanation-3: -The SIDBI (Small Industries Development Bank of India) is a wholly-owned subsidiary of IDBI (Industrial Development Bank of India), established under the special Act of the Parliament 1988 which became operative from April 2, 1990.

Detailed explanation-4: -SIDBI is one of the four All India Financial Institutions regulated by the RBI, the other 3 are Exim Bank, NABARD and NHB. Further readings: Types of Non Banking Financial Institutions India.

Detailed explanation-5: -Micro Units Development and Refinance Agency Bank (or MUDRA Bank)) is a public sector financial institution in India. It provides loans at low rates to micro-finance institutions and non-banking financial institutions which then provide credit to MSMEs. It was launched by Prime Minister Narendra Modi on 8 April 2015.