Cabinet okays 2% interest subvention to Shishu loan accounts under PMMY
National
- Union Cabinet approved a scheme for interest subvention of 2 per cent for a period of 12 months, to all Shishu loan accounts under Pradhan Mantri Mudra Yojana (PMMY) to eligible borrowers
- The scheme will be extended to loans which are not in Non-Performing Asset (NPA) category, as per Reserve Bank of India (RBI) guidelines as on 31st March 2020 and during the period of operation of the Scheme.
- This Scheme is for implementation of one of the measures relating to MSMEs, announced under the Atma Nirbhar Bharat Abhiyan.
- The Scheme will be implemented through the Small Industries Development Bank of India (SIDBI) and will be in operation for 12 months.
Source: AIR
Related General Knowledge
Reserve Bank of India
- The Reserve Bank of India is India's central bank, which controls the issue and supply of the Indian rupee.
- RBI is the regulator of entire Banking in India.
- RBI plays an important part in the Development Strategy of the Government of India.
- Governor: Shaktikanta Das
- Headquarters: Mumbai
- Founded: 1 April 1935, Kolkata
Small industrial Development Bank of India
- Small industrial Development Bank of India (SIDBI) is a development financial institution in India.
- Its purpose is to provide refinance facilities and short term lending to industries, and serves as the principal financial institution in the Micro, Small and Medium Enterprises (MSME) sector.
- It was established on April 2, 1990, through an Act of Parliament.
- SIDBI operates under the Department of Financial Services, Government of India.
- Headquarters location: Lucknow
- Founded: 2 April 1990
- Agency executive: : Mohammad Mustafa, (Chairman and Managing Director);
- Subsidiaries: Micro Units Development and Refinance Agency Bank, etc