How much percentage of the capital of MUDRA is contributed by SIDBI?

Question

Question

This question was previously asked in

SSC CPO 2024 Official Paper-I (Held On: 28 Jun, 2024 Shift 3)

Answer 1

The correct answer is 100

Key Points

100% of the capital of MUDRA is contributed by SIDBI.
MUDRA (Micro Units Development and Refinance Agency) was established to provide funding to the non-corporate small business sector.
SIDBI (Small Industries Development Bank of India) is the principal financial institution for the promotion, financing, and development of the Micro, Small, and Medium Enterprise (MSME) sector.
SIDBI provides refinance support to banks and other financial institutions for lending to micro units under MUDRA.
The contribution by SIDBI ensures that MUDRA has a strong financial backing to support its objectives.

Additional Information

MUDRA was launched on 8th April 2015 by the Government of India.
Its primary objective is to provide loans at low rates to micro-finance institutions and non-banking financial institutions which then provide credit to MSMEs.
MUDRA operates under the aegis of Pradhan Mantri MUDRA Yojana (PMMY).
Loans provided under MUDRA are classified into three categories: Shishu (loans up to ₹50,000), Kishore (loans from ₹50,000 to ₹5 lakh), and Tarun (loans from ₹5 lakh to ₹10 lakh).
The initiative aims to provide financial support to small businesses and entrepreneurs who are often unable to access formal banking channels.