- Finance Ministry is planning to propose a bill in next budget session for giving statutory status to MUDRA Bank.
- MUDRA Bank will act as a regulator for micro finance institutions and will take care of laying down policy guidelines for micro enterprise financing business as well as registration of MFIs, their accreditation and rating
- Currently NBFC executes existing Pradhan Mantri Micro Units Development and Refinance Agency (MUDRA) Yojana.
- Under PMMY, NBFC is financing 5.75 crore self-employed provides loans between Rs 50,000-Rs 10 lakh to small entrepreneurs.
- Through legislation NBFC will be converted as MUDRA Bank.
- MUDRA Bank provides 3 products under the PMMY. They are Shishu covers loans up to ₹50,000, Kishor covers above ₹50,000 and up to ₹5 lakh and Tarun above ₹5 lakh and up to ₹10 lakh, to signify the stage of growth and funding needs of the beneficiary micro unit or entrepreneur.