On 8 April 2015 PM Modi has launched Mudra Bank. By the Help of Mudra Bank small business man can get Loan at very interest rate starting from Rs 50,000/- to Rs 10,000/-.But it has some disadvantages and few points which are not clear.
Disadvantages & Points which are not clear in Mudra Banks:
- It is not cleared that whether the operation of Mudra Bank launched by PM Modi is under RBI supervision or not. If it is not controlled by RBI, than in future when it will grow then there will be potential risk of operation.
- In present situation RBI is having control over all NBFC and Micro financé Institutions, but as the Mudra Bank is launched it will also regulate all Micro Finance Institutions. In This way Multi regulation will comes over Micro Finance Institutions. This will cause serious problems.
- At present in India there are many Financial Intermediates that are already funding to small scale units at low Interest rate like National bank for Agriculture and Rural Development (Nabard), Small Industries Development Bank of India (Sidhi) and National Housing Bank (NHB).So it is not clear that how Mudra bank will differ from them &why it is needed.
- It is saying that it will act like a bank a give loan starting from Rs50,000/- to Rs 10,00,000/- and regulating Agency .That will cause serious problem when it grow in feature.It is not clear that whether it will work as bank or regulatory body.
- To promote this system Govt will take the help of large Network of Post office. If they will use the Network of Post office to promote it will definitely increase the process timing of Loan distribution.
- Till now it is not clear that what will be the process of getting the loan and how much time it take to clear the loan.
- By the help of Mudra card you can make payment of only Rs 20,000/- .which is very low enough.
- How the Portfolio Credit Guarantee will work it is not clear.
- How Credit Enhancement will be there.