Mudra is a Sanskrit word that is commonly used in yoga, dance, and meditation practices. In Sanskrit, “mudra” means “seal,” “gesture,” or “symbol.” Mudras are hand and finger gestures that are believed to have a specific effect on the body, mind, and energy.
The full form of MUDRA, in the context of finance and banking in India, is “Micro Units Development and Refinance Agency.” It is a financial institution established by the Government of India in 2015 to provide funding to small and micro enterprises in the country. The primary objective of MUDRA is to promote the development and growth of micro-enterprises, which are an essential component of the Indian economy.
MUDRA offers various financial products and services, such as micro-credit, overdrafts, and equipment finance, to micro-enterprises across different sectors. The loans provided by MUDRA are categorized into three segments: Shishu (up to Rs. 50,000), Kishor (Rs. 50,000 to Rs. 5 lakhs), and Tarun (Rs. 5 lakhs to Rs. 10 lakhs). MUDRA also provides support services to micro-enterprises, such as financial literacy and entrepreneurial training.
Overall, the establishment of MUDRA has been a significant step towards promoting financial inclusion and empowering small and micro-enterprises in India.