PM Modi launches MUDRA Bank

[wolfschanzze]

A good development, will boost small scale Industries.

 

[utraash]

Good initiative..... Keep it up ....

 

[lasttry]

I understoood some of that.

Problem with rejigging PLR in the short term to move with Inflation is that it hits savings and wealth creation of people's investments and savings right?

Most indices are linked to the PLR.

its actually a mindset change ... when growth is in the dumps, the common mans investment is typically gold, fd's, debt funds etc ... so yeah these will be hit if PLR drops.

however, if the same person is willing to move into lets say equity funds or the capital market directly there wont be a hit if PLR drops. its kind of a dog chase tail scenario.


investors wont move to risky assets unless there is growth. and growth wont happen unless there is low interest rates. for a resource starved country like ours - its always a catch 22 situation. on the other hand a resource rich country needs to do no more than sell some resource to raise cheap capital.

thats why our greatest resource is human resource. we need 100 times more doctors and engineers and accountants and lawyers than we have today so we can sell them to the world. thats our greatest resource. and thats why the skills development program is critical because todays low skilled employees will make sure their kids go to school and get higher skills.

 

[doppelganger]

its actually a mindset change ... when growth is in the dumps, the common mans investment is typically gold, fd's, debt funds etc ... so yeah these will be hit if PLR drops.

however, if the same person is willing to move into lets say equity funds or the capital market directly there wont be a hit if PLR drops. its kind of a dog chase tail scenario.

Your assumption is based on

1) Youth

2) Time

There is a significant population in India who have neither. The retired class. The old. Who live off their savings.

PM Modi made a telling statement in his speech today. Saving comes naturally to us. It is ingrained into our DNA. Which is why Indians who move abroad still cannot live off plastic like the natives there. And will still save a large part of what they earn.

What we save needs to measurably beat what we lose to inflation in terms of money value and time. Consistently.

For those with no income or no time to stay invested, they cannot wait for a good year to beat a bad year. Because a bad year means they do not eat.

 

[lasttry]

Your assumption is based on

1) Youth

2) Time

There is a significant population in India who have neither. The retired class. The old. Who live off their savings.

PM Modi made a telling statement in his speech today. Saving comes naturally to us. It is ingrained into our DNA. Which is why Indians who move abroad still cannot live off plastic like the natives there. And will still save a large part of what they earn.

What we save needs to measurably beat what we lose to inflation in terms of money value and time. Consistently.

For those with no income or no time to stay invested, they cannot wait for a good year to beat a bad year. Because a bad year means they do not eat.

spot on, i was speaking only about those with disposable income that can be invested. the glaring truth about our country is that most of us lead a hand to mouth existence.

 

[indo]

 

[dray]

PM Modi launches MUDRA Bank, expected to benefit 5.77 crore micro-finance institutions in India

New Delhi: Prime Minister Narendra Modi on Wednesday launched MUDRA Bank under Pradhan Mantri Jan Dhan Yojana. This will provide credit of up to Rs 10 lakh to small entrepreneurs and act as a regulator for 'Micro-Finance Institutions' (MFIs).

"Big industrial houses provide jobs to only 1.25 crore people, while small entrepreneurs employ 12 crore people. MUDRA Bank aims to fund the unfunded small entrepreneurs; need to strengthen savings habit in the country," Modi said.

He announced higher compensation for crop damage and eased criteria for them to avail government support.

"Farmers are going through various problems due to seasonal calamities. We have told banks and insurance companies to provide help," he added.

The roles envisaged for MUDRA include laying down policy guidelines for micro enterprise financing business and registration of MFI entities as well as their accreditation and rating.

There are about 5.77 crore small business units. It will also lay down "responsible financing practices" to ward off over indebtedness and ensure proper client protection principles and methods of recovery, besides development of standardised set of covenants governing last mile lending to micro enterprises.

"Providing access to institutional finance to such micro/small business units/enterprises will not only help in improving the quality of life of these entrepreneurs but also turn them into strong instruments of GDP growth and employment generation," the Finance Ministry said in a statement.

In his Budget speech, Finance Minister Arun Jaitley had proposed the Micro Units Development Refinance Agency (MUDRA) with a corpus of Rs 20,000 crore, and credit guarantee corpus of Rs 3,000 crore.

"The initial products and schemes under this umbrella have already been created and the interventions have been named 'Shishu', 'Kishor' and 'Tarun' to signify the stage of growth/development and funding needs of the beneficiary micro unit/entrepreneur," the Ministry said.

Shishu would cover loans up to Rs 50,000 while Kishor above Rs 50,000 and up to Rs 5 lakh. Tarun category will cover loans of above Rs 5 lakh and upto Rs 10 lakh.

PM Modi launches MUDRA Bank, expected to benefit 5.77 crore micro-finance institutions in India - IBNLive

I saw most of his speech. He has really grown into his role as PM. More self assured. Calmer. Less thunderous. Definitely as convincing.

Mentioned Muslims many times. Making a point. Delved on his experiences as CM of Gujarat in his early day in 2003-2004, talking of the kite making cottage industry almost predominantly run by Muslim workers. How he helped a 36 crore industry grow in a leap to a 500 crore industry.

I felt good as an Indian today. 20,000 crore is nothing for our country really. And its impact is going to be reaped by crores of our countrymen who have skills and drive and ambition but lack funding and have to go to sharks.

Kudos to our PM. May he continue to drive our country forward. A very positive start to my day.

Missing you in this thread! @Guynextdoor2

 

[Makaramarma]

As usual nothing for the christians and muslims

BJP pushing its communal agenda.