Question
Which of the following statements is/are incorrect
regarding Micro Unit development and refinance agency (MUDRA)? 1. It provides loans at low interest rates to micro financial institutions and NBFCs for farming and small industries. 2. It has been formed as a wholly owned subsidiary of NABARD. 3. Shishu, Tarun, and Kishor are the subcategories of loan in the increasing order of limit for the loan disbursal. Select the incorrect answer using the codes given below:Solution
● Statement 1 is incorrect: Pradhan Mantri MUDRA Yojana (PMMY) is a scheme launched in 2015 for providing loans up to 10 lakhs to the non-corporate, non-farm small/micro enterprises given by Commercial Banks, RRBs, Small Finance Banks, MFIs and NBFCs. MUDRA is an institution to achieve this purpose. ● Statement 2 is incorrect: It is a wholly owned subsidiary of Small Industries Development Bank of India (SIDBI). ● Statement 3 is incorrect: Shishu, Kishor and Tarun are the increasing order of limit for loan disbursal. Shishu loans have limit of Rs 50,000 /- , Kishor have limit upto Rs 5 lakhs and Tarun have limit upto Rs 10 lakhs.
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