The major aspect of financial inclusion is enabling the flow of credit to small businesses. In pursuance of the announcement in the Union Budget 2015-16, the Micro Units Development finance Agency (MUDRA) was set up and this led to which of the below mentioned schemes?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. Pradhan Mantri Mudra Yojana (PMMY) .
The Micro Units Development and Refinance Agency (MUDRA) was established following the Union Budget 2015-16 announcement to promote financial inclusion by providing credit access to small businesses and micro-enterprises. This led to the launch of the Pradhan Mantri Mudra Yojana (PMMY). Under PMMY, loans up to ₹10 lakh are extended to non-corporate, non-farm small/micro enterprises. The scheme categorizes loans into three types—Shishu, Kishore, and Tarun—based on the stage of business growth and funding needs. This initiative aims to empower small entrepreneurs, encourage self-employment, and boost India’s micro, small, and medium enterprises (MSMEs) sector.
Other Options:
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Mission Indradhanush: Aimed at improving immunization coverage, not related to finance or credit.
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Bhasha Sangam Initiative: Focuses on promoting multilingualism and language learning, unrelated to finance.
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Rashtriya Yuva Sashaktikaran Karyakram: A youth empowerment program, not connected to microfinance or credit flow.