MUDRA-A helping hand of small scale industries
When Indian banks are competing with each other to provide loans to the multinational companies the question is who will give financial aid to the small scale industries in the country? In order to address this issue, the central government has come forward with MUDRA bank. A number of people living in rural and interior part of India have been excluded from the availing benefit from the formal banking system .They do not have any type of insurance, credit, loans and financial facilities to formulate and run their micro units. So, they depend largely on assorted group of entities which include unincorporated bodies or money lenders who charge high rate of interest and often with unbearable condition. If the unit fails, the borrowers never be free from the strong arm tactics of money lenders.