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LATEST NEWS UPDATES | MUDRA Bank launched by PM Modi, increases farmer’s compensation

MUDRA Bank launched by PM Modi, increases farmer’s compensation

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published Published on Apr 9, 2015   modified Modified on Apr 9, 2015
-Tehelka

Prime Minister announced increase in quantum of compensation for crop damage to affected farmers by 50 per cent.

Showering a bright hope to small entrepreneur, Prime Minister Narendra Modi launched MUDRA (Micro Units Development and Refinance Agency) bank under the Pradhan Mantri Jan Dhan Yojana which will provide credit up to 10 lakh to small entrepreneur and act as a regulator for ‘Micro-Finance Institutions' (MFIs).

The prime minister also announced increase in quantum of compensation for crop damage to affected farmers by 50 per cent. "Criteria of 50 per cent crop damage for providing compensation to affected farmers has been reduced to 33 per cent which will help more farmers to get compensation for their crop loss," he said speaking at the launched of the MUDRA Bank adding that he has also asked banks to restructure loans of affected farmers and instructed insurance companies to pro-actively settle their claims.

"Second important decision we have taken is to raise the parameters for helping him (farmers). The amount of compensation has been increased to 1.5 times. If earlier, he was getting Rs 100 as compensation, now he will get Rs 150, if it was Rs 1 lakh, he will get Rs 1.5 lakh... a 50 per cent increase," the Prime Minister added.

Mudra Bank is expected to benefit 5.75 crore small business and will help in economic progress in the country, Modi said, adding, he had taken review of the crop damage with Ministers sent to undertake on the spot assessment. "Last year, it was due to less rainfall and this year due to unseasonal rainfall and hailstorm."

 


Tehelka, 8 April, 2015, http://www.tehelka.com/mudra-bank-launched-by-pm-modi-increases-farmers-compensation/


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