MUDRA BANK

What is Mudra Bank?

 MUDRA means Micro Units Development and Refinance Agency(known as the MUDRA bank)

 Mudra bank is being set up through a statutory enactment and will be responsible for developing and refinancing through a Pradhan Mantri Mudra Yojna.

 It is first set up as a subsidiary of the Small Industries Develpoment Bank of India(SIDBI). It will later be converted into full-fledged bank through an act of the parliament.

 MUDRA Bank is a public sector financial institution in India, It provides loan at low rates to small entrepreneurs.

OBJECTIVE -

 It was launched in 8th April 2015 with the objective of regulating micro and small enterprise financing business, and supporting them particularly those members who belongs from scheduled castes and scheduled tribes.

 MUDRA Bank will also register MFIs(Micro Finance Institutions) and will be responsible for accreditation and rating of MFI.

 It will also make proper last mile practices to be followed by MFI to provide proper client protection and to prevent from indebtedness.

AIM -

 The finance ministry said measures to be taken up by the MUDRA are targeted mainly on young, educated or skilled workers and entrepreneurs including women entrepreneurs.

 Basically small entrepreneurs and small businessman are often cut from banking system because of limited branch presence, so MUDRA bank will partner with local coordinators and provide finance to small and micro businesses.

SOCIAL SECURITY SCHEMES

On his first visit to West Bengal after becoming Prime Minister of India, Narendra Modi surprised financial analysts by declaring three social security schemes for 1.25 billion people. Now accidental insurance is available at mere Rs.12 for a coverage of

Rs.200,000. Read summary of schemes :

Pradhan Mantri Suraksha Bima Yojna

Eligibility

 18 to 70 years of age

 Having a savings account with a public sector bank

 Insurer allows auto withdrawal for the payment of annual premium

Policy cost and coverage

 Rs.12 per subscriber for a coverage of Rs.2,00,000

Maturity

 Death due to accident or total physical disability due to accident

Pradhan Mantri Jeevan Jyoti Yojana

Eligibility

 18 to 50 years of age

 Having a savings account with a public sector bank

 Insurer allows auto withdrawal for the payment of annual premium 

PRIVATIZATION OF NATIONALIZED BANKS

After burying the vital sectors in the name PPP mode of our country viz. coal, mines, lands, ports, forest and many more, now this government is making a headway in privatizing the consolidating economic pillars of our country Banking and Insurance sectors.

Country’s corporate tycoons and international lords of different companies are now showing immense interest in buying stakes in nationalized banks and insurance companies. Modi’s government is inviting private entities to come and capture the entire Indian market belittling the exact meaning of swadesi. This government is of the view that if private set ups will come up then our country will flourish and will be able to showcase India’s position on global platform in a better way. Government has forgotten the reason behind the nationalization of banks way back in the year 1969

and 1982.

Total number of branches of nationalized banks is now at 75000. And in these branches the amount of hard earned money deposited by our people is 80 lakh crore. Out of these deposited amount 61 lakh crore rupees have been used as advances and loans by the banks. In the fiscal year 2013-2014, the banking institutions had registered a profit of 1, 28,000 crore rupees. But the net profit was pegged at 37000 crore rupees only because those corporates who had taken the loans from banks and not made any repayment towards the advances. In order to write off  these loans huge provisions had been made that is the reason of reduced net profits in the banks.

Instead of blacklisting and probing the wrong doings of these finger countable corporate and private firm owners, the government is interested in promoting these entities to have pie in the BFSI sector. The pace at which this government wants to privatize the nationalized outfits is more as compared to that of the erstwhile UPA government.

CONTACT LESS MULTI CURRENCY FOREX CARD SCHEME

 Axis Bank is India's Third largest private sector lender.

 It launched the first Contact less Debit, Credit and Multi Currency Forex Card in association with VISA the payments gateway company in the country.

 Axis Bank's Contact less cards contain chip and an antenna (based on Radio Frequency) that is designed to make payments quicker, seamless and hassle free.

 The bank will offer a contact less debit/credit cards to its 1.7 Million Premium customers, which also enables withdrawal of 15 currencies via Multi - Currency Forex Facility.

 Once the merchant enters the purchase amount in the contact less POS terminal, then customer simply has to tap the card on the terminal and the payment is processed wirelessly in a secure manner. The customer will alert through SMS and E-mail.

 The use of this card is very easy.

 The symbol  on your card and on such machine will be same. It means you can get benefit of contact less card on that machine.

 This card has a facility that you have to not to enter your password (up to Rs. 2000) at billing counter where contact less terminal is kept. 

 This card benefits you because you have no need to carry more cash.

BANDHAN BANK

Recently, there is a buzz about BANDHAN BANK, Lets know about it:

 Bandhan Bank was set up in 2001 to handle dual objective of poverty alleviation and women empowerment.

 It was previously a Non - Banking Financial Company

(NBFC) butBandhan Bank received its universal banking licence

from Reserve Bank of India.

 The bank rolled out its services on 23rd August, 2015 (Founded).

 The bank started with 501 branches in all most 22 states in India which is highest branches of any private bank on the first day.

 The bank will provide funds to help and develop the Small and Medium Enterprises (SME).

 The saving interest rates have been fixed at 4.25% below Rs. 1,00,000 and 5% above Rs. 1,00,000.

 It is interesting to know that Bandhan was the only micro-finance institution that applied for a banking licence.

 Headquarters is located at Kolkata, West Bengal.

 Slogan of bank is "Aapka Bhala, Sabki Bhalai".

 Incidentally, Bandhan is the first bank to be set up in eastern part of India after Independence.

 MD and CEO of bank is Chandra Shekhar Ghosh.

PAYMENT BANKS VS SMALL FINANCE BANKS

Payment banks can receive deposits and remittances, but cannot lend, focusing on migrant labour and low income households.

Small banks will lend to “unserved and under-served sections”, including small business units, small and marginal farmers, and micro and small industries.

Payment Banks

Objective

Provide small savings accounts and payments /remittance services to migrant labour workforce and low-income households

Small Finance Banks

Financial inclusion and supply of credit to small business units and farmers through high-technology and low-cost operations

Eligible Promoters

Individuals or professionals with necessary experience and eligibility, existing NBFCs, corporate banking correspondents, mobile companies, supermarket chains, real estate co-ops and corporate entities

Resident individuals or professionals with 10 years of experience in banking and finance, companies and societies owned and controlled by residents, existing NBFCs, microfinance institutions and local

area banks owned and controlled by residents