GS PrelimsEconomyGovernment Schemes2016

Pradhan Mantri MUDRA Yojana is aimed at

A

bringing the small entrepreneurs into formal financial system

B

providing loans to poor farmers for cultivating particular crops

C

providing pensions to old and destitute persons

D

funding the voluntary organizations involved in the promotion of skill development and employment generation

Correct Answer: Option A

Explanation

1. The Pradhan Mantri MUDRA Yojana (PMMY) was launched to provide loans up to ₹10 lakh to non-corporate, non-farm small/micro enterprises. 2. MUDRA stands for Micro Units Development and Refinance Agency Ltd. 3. The primary aim is to provide access to institutional finance for these small entrepreneurs, many of whom rely on informal sources or are excluded from the banking system. By facilitating access to credit from banks, MFIs, and NBFCs, the scheme aims at 'bringing the small entrepreneurs into formal financial system'. 4. Option (A) correctly reflects this core objective. 5. Option (B) is incorrect; MUDRA focuses on non-farm sector activities, not specifically loans to poor farmers for cultivating particular crops. 6. Option (C) is incorrect; it describes social security pensions, not the purpose of MUDRA. 7. Option (D) is incorrect; MUDRA provides finance to entrepreneurs directly (through lending institutions), not primarily for funding voluntary organizations involved in skill development.

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