CII President Sumit Mazumder termed it as a "step in the right direction to leverage Indian MSME sector especially in semi urban and rural India".
     
"This bank will spur the growth of Indian MSME sector and help increase their contribution to the country's GDP from the current level of 38 per cent".
     
The Rs 20,000-crore MUDRA Yojana, launched by Prime Minister Narendra Modi today to fund the "unfunded" with micro-lending of up to Rs 10 lakh, may be converted into a bank in next 12 months with passage of a bill in this regard in Parliament.
     
Mazumder stated that the launch of the bank will greatly increase the confidence of young, educated or skilled workers who aspire to become first generation entrepreneurs. Existing small businesses too will be able to expand their activities.
      
Ficci President Jyotsna Suri said: "We welcome setting up of MUDRA Bank as it is a great step forward in providing the much-needed financial access and support to the small and medium enterprises. This will go a long way in stimulating the growth of MSMEs which is crucial for large scale job creation and accelerating GDP growth".
     
"A dedicated institutional finance system has been the need of the hour to energise the entrepreneurial spirit of the nation. With MUDRA Bank envisaged as the nodal financing agency as well as regulator of Micro Finance Institutions, we hope that financial stress of MSMEs will now be alleviated".
     
The Micro Units Development and Refinance Agency Ltd (MUDRA) will focus on the 5.75 crore self-employed who use funds of Rs 11 lakh crore and provide jobs to 12 crore people.
     
The roles envisaged for the proposed MUDRA (Micro Units Development and Refinance Agency) Bank include laying down policy guidelines for micro enterprise financing business as well as registration of MFIs, their accreditation and rating.

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