Prime Minister Narendra Modi on Wednesday launched Mudra (Micro Units Development and Refinance Agency) bank under the Pradhan Mantri Jan Dhan Yojana.
Speaking at the occasion, the PM said: “We need to increase employment opportunities in the nation.”
“Big industrial houses provide jobs to only 1.25 crore people, while small entrepreneurs employ 12 crore people, PM Modi said.
Finance minister Arun Jaitley said that “Mudra bank will benefit around 5.77 crore small business enterprises”.
“Mudra bank is a step in the direction of funding the unfunded,” Arun Jaitley said.
The Prime Minister also distributed Mudra loans to some beneficiaries.
The finance ministry Monday asked banks and the state-run Life Insurance Corp (LIC) to make availablefor the Rs.30,000 life cover available under the Pradhan Mantri Jan Dhan Yojana (PMJDY).
The LIC has also been asked to settle claims within 15 days of the receipt of the claim form.
“Banks and LIC were asked to make claim forms readily available in their website. LIC was asked to settle the claim within 15 days from the date of receipt of claim, if otherwise in order.
“The settlement process should not exceed 30 days in any case,” the finance ministry said in a statement here following a video conference between joint secretary Anurag Jain and executive directors of public and private sector banks to review the progress of the Jan Dhan Yojana.
Till Dec 22, banks have opened 9.83 crore bank accounts under the prime minister’s financial inclusion scheme and issued 7.28 crore RuPay cards.
Banks were also asked to issue passbooks to all account holders and activate RuPay cards.
The banks have agreed to complete this task by Jan 15, 2015.