Published Paper Details:

This paper is an attempt to analyse the importance and role of MUDRA bank as a tool for financial assistance to MSME sector. The study is based on the secondary source of data obtained from the official website of MUDRA.org, PMMY report, newspapers and magazines, and other published sources The Micro Small Medium Enterprises (MSME) segment plays a substantial role in the development of the Indian economy. The progress of this segment is extremely critical to meet the national imperatives of financial inclusion and generation of substantial levels of employment across urban and rural areas across the country. Indian MSME sector gets a significant boost by the implementation of Pradhan Mantri MUDRA Yojana (PMMY) Scheme and a dedicated bank for MSME sector (MUDRA Bank) that spurs the growth of Indian MSME Sector and help them increase their contribution to Indian GDP from its current level of 38%. This bank immensely increases the confidence of young, educated or skilled workers who would now be able to aspire to become first generation entrepreneurs; existing small businesses, too, will be able to expand their activities. The main objectives of MUDRA Bank are, to encourage entrepreneurs and small business units to expand their capabilities and operations, to reduce over-indebtedness and to provide formal a system of credit.