PNB & Amul Signs MoU To Provide Finance

Current Context: PNB and Amul to provide finance through MUDRA. This is a recent development that was announced on July 1, 2023.

• MUDRA stands for Micro Units Development and Refinance Agency, which is a scheme launched by the government of India in 2015 to provide loans up to Rs 10 lakh to non-corporate, non-farm small/micro enterprises.
• The MoU between PNB and Amul aims to provide small-ticket financing under MUDRA to Amul’s dealers and retailers, who can avail loans ranging from Rs 50,000 to Rs 10 lakh at attractive interest rates and flexible repayment options.
• The MoU also envisages integrating various digital channels, such as QR codes, POS systems, and UPI, to facilitate transactions and collections. PNB will also offer working capital limits and supply chain finance to Amul’s dealers and retailers.
• The MoU is expected to benefit over 11 lakh stakeholders within Amul’s value chain, from cows to consumers. It will also create employment opportunities and improve livelihoods across the country.

Question:

Q.1 What does MUDRA stand for?
a. Micro Units Development and Refinance Agency
b. Microfinance and Urban Development Research Agency
c. Micro Enterprises Development and Rural Advancement
d. Microfinance and Unorganized Sector Development Agency