Monday, March 23, 2015


The Government proposes to set up Micro Units Development and Refinance Agency (MUDRA) Bank for granting loans to small entrepreneurs. The Union Finance Minister in the Union Budget 2015-16 has announced to set up MUDRA Bank through a statutory enactment. A sum of Rs. 20,000 crore would be allocated to the MUDRA Bank from the money available from shortfalls of Priority Sector Lending for creating a Refinance Fund to provide refinance to the Last Mile Financers. Another Rs. 3,000 crore would be provided to the MUDRA Bank from the budget to create a Credit Guarantee corpus for guaranteeing loans being provided to the micro enterprises. 

MUDRA Bank will operate through regional level financing institutions who in turn will connect with last mile lenders such as MFIs, Small Banks, Primary Credit Cooperative Societies, Self Help Groups (SHGs), NBFC (other than MFI) and other lending institutions. 

MUDRA Bank will refinance Micro-Finance Institutions through a Pradhan Mantri Mudra Yojana (PMMY). In lending, priority will be given to SC/ST enterprises. These measures will greatly increase the confidence of young, educated or skilled workers who would not be able to aspire to become first generation entrepreneurs; existing small businesses, too will be able to expand their activities. 

Since the MUDRA Bank will be set up through an enactment of law and it will take some time. To begin with, the same is being operationalised as a subsidiary of Small Industries Development (SIDBI). 

This was stated by Shri Jayant Sinha, Minister of State in in written reply to a question in the Lok Sabha today. 


Wednesday, March 04, 2015

Regarding Bank policies

Current Monitory policy rates

Cash Reserve Ratio -                            4%

Statutory Liquidity Ratio-                    21.5%

Repo Rate-                                           7.50% (Earlier it was 7.75%)

Reverse Repo Rate-                             6.50%

Marginal standing Facility(MSF)-       8.50%

Second Middle Assignment questions for IT-B on MEFA

Write the answers for the following questions

1) What is Financial Accounting, Explain various principles of accounting (Concepts & Conventions)

2) What is Capital budgeting, Explain various methods of capital budgeting(PBP, ARR, NPV, IRR &PI)

3) What is Ratio Analysis, Explain its Advantages and Limitations

Second Middle Assignment Questions for ECE and CSE on Banking operations Insurance and Risk Management

Write the answers for the following Questions

1) Explain the History and Formulation of IRDA 

2) What is Risk Management? Explain various ways to handle the business risk

3) What is Financial Risk management? Explain various methods of Financial Derivatives