Correct option is B
The Corporation Bank became the first bank in India to launch the MUDRA Card in July 2015. The MUDRA (Micro Units Development and Refinance Agency) Card is part of the Pradhan Mantri MUDRA Yojana (PMMY), which was introduced by the Government of India to provide financial assistance to micro and small enterprises.
MUDRA Card Features:
- It provides working capital to micro and small businesses.
- The MUDRA Card is based on the RuPay platform, and it allows entrepreneurs to withdraw cash from ATMs and make transactions online.
MUDRA Yojana:
The Pradhan Mantri MUDRA Yojana (PMMY) was launched in 2015 by the Ministry Of Finance to provide financial support to micro, small, and medium enterprises (MSMEs),
Key features
1. Loans are offered in three categories based on the stage of business and amount of funding required:
- Shishu: Loans up to ₹50,000 for startups and new entrepreneurs in the early stages of their business.
- Kishor: Loans between ₹50,001 and ₹5 lakh for businesses that are looking to expand or grow.
- Tarun: Loans between ₹5 lakh and ₹10 lakh for well-established businesses seeking larger funding for further expansion.
2. Loans are collateral-free, meaning borrowers are not required to provide any security or guarantee to avail the loan.
3. The interest rates on MUDRA loans are competitive and decided by the lending institution.
4. MUDRA Card functions like a credit card for entrepreneurs.
5. Prioritizes loans for women entrepreneurs, SC/ST beneficiaries, and economically weaker sections.
6. Provides refinance to banks and financial institutions that disburse loans under the scheme. This helps banks provide loans at affordable rates.
7. Zero processing fees, making them more attractive for small businesses with limited capital.
8. The scheme is specifically designed to address the credit needs of the informal sector, which often lacks access to formal banking services and credit facilities.
