MAEWARI COLLEGE

RANCHI
DEPARTMENT OF COMMERCE & MANAGEMENT STUDIES

PROJECT REPORT ON
A sudy of pradhan mantari
MUDRA yojana (PMMY)

SUBMITTED BY:
NAME : WASIM AKARAM
CLASS : BACHELOR OF COMMERCE
REGESTRATION ROLL NO. : MCR18810516
EXAM ROLL NO. : 18MCRBC810516

1
 DICLARATION

I hereby declare that the project work

entitled (A study of Pradhan mantari
MUDRA yojana (PMMY)) submitted to
(MR. VIKASH KUMAR) is a project
report of the work done by (MR
VIKASH KUMAR) under the guidance
in partial fulfillment for B. COM. The
result embodied In this thesis have
not been submittedto any other
school/Institute.

2
 CERTIFICATE
This is to certify that the major project report
entitled; A study of Pradhan mantari MUDRA
yojana(PMMY) has been carried out by WASIM
AKRAM having examination roll
no.18MCRBC810516 bonafide student of
Bachelor of commerce, VIth semester.
This major project report of his work
accomplished during VIth semester of Bachelor
of commerce, as partial fulfillment of the
requirement of the degee of B.COM for the
successful completion of the VIth semester,
under my guidance.
Iwish happiness and success in his endeavor.

(SIGNATURE OF PROJECT GUIDE)

3
ACKNOWLEDGEMENT

I would like to express my special thank

of gratitude to our teacher (Mr VIKASH
KUMAR ,Assistant Professor) as well as
our principal (Prof. (Dr.)Gyan Prakash
Verma) who gave us the opportunity to
make this project on the topic (A study
of Pradhan mantari MUDRA yojana)
which helped one in doing a lot of
research and I came to know about
many new things so I’am very thankful
to them.
Wasim Akram
B.COM

4
 CONTENTS
S.No TITLE PAGE NO.
01 ABSTRACT 8-9
02 INTRODUCTION 9-12
03 LAUNCH OF MUDRA 13-16
04 THE 16-21
IMPLEMENTATIONOF
(PMMY)
05 PRADHAN MANTARI 21-23
MUDRA YOJANA
SALIENT FEATURES
06 BENEFICIARIES OF 23-26
SCHEME
07 MUDRA: ROLE AND 27-28
RESPONSIBILITIES
08 FINANCIAL 28-31
INCLUSIONAND (PMMY)
09 DATA ANALYSIS AND 31-34
PROGRESS MADE
UNDER (PMMY)
10 SWOT ANALYSIS 34-35
STRENGTHS
11 WEAKNESS 35-36
12 OPPURTUNITES 36-37
13 RECOMMENDATION 37-38
14 MUDRA LOAN SCHEME 38-45
15 INFORMATION AND 46-59
SUBMISSION OF EOI
RESPONSE
16 IMPORTANT 59-61
INSTRUCTION
17 CONCLUTION 61-62
18 REFERENCES 62-63

ABSTRACT
5
Financial Inclusion is one of the most
treasured strategies in India. Our
monetary arrangement has
dependably been driven by a basic plan
of a practical and comprehensive
development. The primary point
behind the monetary consideration is
to cover the all segment of population
under monetary administrations.
Government of India (GOI) has
introduced some of the major steps to
“fund the unfunded” micro enterprises
segment. One of the initiatives taken
by Government of India (GOI) is
Pradhan Mantri Mudra Yojana (PMMY)
which plays an important role in
achieving the success of financial
inclusion. The idea behind the scheme

6
is to provide the credit requirement to
small business upto 10 lakh. This
research paper includes the overview
of PMMY, performance analysis of the
scheme based on state, caste and
category, SWOT analysis of the scheme
and some recommendations

PRADHAN MANTARI MUDRA YOJANA

INTRODUCTION

The Pradhan Mantri Mudra Yojana

(PMMY) was launched by the Hon’ble
Prime Minister of India in April 2015

7
with the overarching mission of
“funding the unfunded” by extending
small loans to micro enterprises
engaged in income generating
activities. The launch of PMMY is
considered a big leap towards the
avowed objective of financial inclusion
being espoused by Government of
India. The Micro Units Development &
Refinance Agency Limited (MUDRA), a
wholly owned subsidiary of Small
Industries Development Bank of India
(SIDBI), has played a vital role in
facilitating the implementation of the
PMMY by providing refinance,
extending Credit Guarantee support
and monitoring the progress of the
Scheme through a dedicated web
portal. Given its innovative approach
8
and smooth implementation, the
scheme has been able to achieve
remarkable success. In the first year of
its implementation, PMMY has been
able to provide financial assistance to
nearly 3.50 crore micro entrepreneurs
with a loan amount of ` 1,32,954 crore,
thereby surpassing the target of `
1,22,188 crore. The success of the
PMMY not only marked triumph of the
Scheme in making a dent in the
unfunded area but also demonstrates
empowerment of the small
entrepreneurs through the right
implementation of the Yojana. A
glimpse of the success achieved under
the Yojana is captured and presented
in this book. The journey which started
on April 8, 2015 with the launch of the
9
PMMY and MUDRA is depicted through
photographs, quotes and anecdotes of
the enterprising micro entrepreneurs,
which I am sure will enthuse a lot of
people and other stakeholders. I wish
MUDRA and PMMY further success in
this endeavour towards funding the
unfunded. It gives me immense
pleasure in presenting this coffee table
book titled “A Journey of nurturing the
aspirations of the informal sector”
implementing the success of Pradhan
Mantri Mudra Yojana (PMMY), a
programme dedicated for providing
loan to micro entrepreneurs, whose
credit needs are upto ` 10 lakh, through
banks and MFIs. To support the
programme, Micro Units Development
& Refinance Agency Limited (MUDRA)
10
 LAUNCH OF MUDRA
was launched which extended funding
support to last mile financial
institutions. Further, Mudra Credit
Guarantee is also extended to these
institutions through NCGTC, a sister
institution of MUDRA. The first year of
implementation of programme has
been very encouraging. I would like to
place on record our appreciation and
thanks to all banks and MFIs who
participated in the programme and
made it a great success. I would also
like to thank the officials of DFS, GoI,
and SIDBI, who extended their
unstinted support for success of the
programme. Many thanks are also due
to the Board of Directors of MUDRA,
Mudra nodal officers and the staff of
11
MUDRA in ensuring the successful
implementation of PMMY and
documentation of the same through
this coffee table book.

INTRODUCTION
Micro Units Development and
Refinance Agency Limited (MUDRA),
was launched as a Financial Institution
on 8th April 2015 by the Hon’ble Prime
Minister, for supporting the last mile
financial institutions, banks, Micro-
finance Institutions (MFIs), Non-
Banking Financial Institutions (NBFCs)
and other lending institutions, which
are in the business of lending to micro
enterprises, engaged in manufacturing,
trading, services and other income
12
generating activities. MUDRA provides
refinance, Credit Guarantee and other
development support to these lending
institutions to expand their outreach
and providing support for “funding the
unfunded”. This in turn helps micro
businesses across the length and
breadth of the country. MUDRA’s
mandate includes developing the micro
enterprise into a viable economic
sector, through various developmental
interventions, both financial and non-
financial, with a view to enhance the
income and employment opportunities
in the country. Pradhan Mantri Mudra
Yojana (PMMY) is a programme
directed towards supporting income
generating micro enterprises engaged
in manufacturing, trading and services
13
sectors with a loan requirement up to `
10 lakh. Recently, the activities allied to
agriculture are also included as eligible
under PMMY. Any Indian Citizen, who
is eligible to avail of loan and has a
business plan for an income generating
activity can avail of MUDRA loan under
PMMY.

THE IMPLEMENTATION OF (PMMY)

PMMY loans are being extended by all
Public and Private Sector Commercial
Banks, Regional Rural Banks (RRBs),
Cooperative Banks, Foreign Banks,
Micro Finance Institutions and Non-
Banking Finance Companies.

14
Creating Awareness
To ensure that every individual at the
bottom of the pyramid is benefited,
wide publicity for the scheme was
provided through electronic media,
radio, posters, newspaper and other
advertisements. Town hall meetings
were held and credit camps were
organized as part of awareness
creation. Further, simplified common
loan application form for Shishu
category was introduced and the
application forms for Kishore and Tarun
loans were also standardized.

The Progress so far

During 2015-16, a target of ` 1,22,218
crore was set for PMMY, against which
` 1,32,954.73 crore was disbursed, thus
15
surpassing the target by the end of the
year. For the F.Y. 2016- 17, a target of
`180,000 crore has been set. The
achievements under PMMY is captured
on a weekly basis through a dedicated
PMMY Portal which is monitored by
MUDRA. Apart from refinance, credit
guarantee support is provided through
the sister institution, NCGTC, to the
eligible loans given by the partner
institutions under the Pradhan Mantri
Mudra Yojana
Credit Guarantee Fund for
Micro Units
As announced by the Hon’ble Union
Minister for Finance in the budget for
FY 2015―16, a separate credit
guarantee fund was created for
16
MUDRA loans, with an initial corpus of
` 3000 crore. National Credit Guarantee
Trustee Company (NCGTC), managing
various credit guarantee funds, was
appointed as the implementing agency
for Credit Guarantee Fund for Micro
Units (CGFMU). The fund was
constituted during 2015-16 and the
schemes were notified on April 18,
2016 through a GoI gazette
notification. To enhance the flow of
credit at the ground level, the cover is
given on portfolio basis as against
individual unit.
MUDRA CARD
MUDRA Card is an innovative credit
product, whereby the borrower can
avail of credit in a hassle free and
17
flexible manner. It provides a facility of
working capital arrangement in the
form of an overdraft facility to the
borrower. Since MUDRA Card is a
RuPay debit card, it can be used for
drawing cash from ATM or Business
Correspondent or make purchase using
Point of Sale (POS) machine and repay
the amount, as and when, surplus cash
is available, thereby reducing the
interest cost. During 2015-16, 5.17 lakh
MUDRA cards were issued for an
amount of ` 1476.96 crore.
“MUDRA MITRA”
MUDRA MITRA is a mobile phone
application available in Google Play
Store and Apple App Store, providing
information regarding ‘Micro Units
18
Development and Refinance Agency
Ltd. (MUDRA)’ and its various
products / schemes. It guides a loan
seeker to approach a Banker in availing
MUDRA loan under Pradhan Mantri
Mudra Yojana (PMMY). Users can also
access useful loan related material
including sample loan application
forms.
From daily wage earner to
handloom owner
Padmini Meher lives in Attabira area of
Bargarh district. She was managing her
household expenses with great
difficulty. The meagre income made by
her by working in her fellow villager’s
handlooms did not suffice. Her
husband worked as a daily wage
19
labourer. Even after combining their
earnings, the income was still
insufficient to run the family. A steady
source of income was very much
needed for the family and this was
made possible by the intervention of
Annapurna Micro Finance under
PMMY. With constant savings and
appropriate use of micro-credit facility,
today Padmini is a proud owner of
handloom machine, on which she
weaves beautiful sarees and sells them,
giving her extra income for her family.
PRADHAN MANTRI MUDRA
YOJANA (PMMY) SALIENT
FEATURES
PMMY was announced by the
Hon’blePrime Minister Shri Narendra
20
Modi on 8th April, 2015 alongside the
reporting of MUDRA bank. PMMY is
another financial inclusion initiative of
Government of India which aims not
only on funding the unfunded but also
aims to increase the funding gap to
micro enterprises. It also helps the
existing micro units to enhance their
activities. GOI makes guidelines, rules
and regulations related to PMMY, for
all banks and MFIs. MUDRA is Non-
banking finance institution for
supporting the micro enterprises
segment in the country. It provides
support to the banks and all MFIs for
micro enterprises having loan necessity
up to 10 lakhs.
BENEFICIARIES OF SCHEME
21
Any Indian Citizen who has a wage
producing plan from small scale
business exercises in exchanging,
assembling and preparing and whose
advance prerequisite is under Rs.10
lakh can approach advances under
PMMY. Loan rate is regulated by
Reserve Bank of India (RBI) time to
time. Non corporate Small Business
Sector (NCSBS) occupied with benefit
division, miniaturized scale fabricating
units, natural products and vegetable
distributing, support and repairing,
handiworks and working nourishment
administrations and so on are
benefited under the plan.
MUDRA BANK

22
The Union Budget presented by the
Hon’ble Finance Minister ShriArun
Jaitley, for F.Y. 2015-16, proclaimed the
arrangement of Micro Units
Developmentand Refinance Agency or
MUDRA Bank. It was enrolled as a
Company in March 2015 according to
Companies Act, 2013. MUDRA Bank is
additionally a NonBanking Finance
Institution or NBFI with the Reserve
Bank of India on 07thApril 2015 with a
target of “funding the unfunded”.
MUDRA had propelled by the Hon’ble
Prime Minister Shri Narendra Modi on
08th April 2015. MUDRA Bank is
collaboration with banks, Micro
Financial Institutions and other loaning
foundations. MUDRA Bank is a
noteworthy monetary incorporation
23
activity in Indian economy. MUDRA has
been fundamentally shaped as a
completely claimed backup for Small
Industries Development bank of India
or SIDBI with 100% capital being
committed by it. The approved capital
of MUDRA is 1000 crores and paid up
capital is 750 crore.
MAJOR PRODUCT OFFERINGS
MUDRA Bank has divided borrowers
into three categories such as:
Shishu: shelters loans up to Rs
50,000/-
Kishor: shelters loans above Rs
50,000/-to up to Rs 5 lakh
Tarun: shelters loans above Rs 5 lakh to
up to Rs 10 lakh.

24
MUDRA: ROLE AND
RESPONSIBILITIES
It will be in charge of creating,
upgrading and renegotiating every
single Microundertaking zone by
supporting the Micro Finance
Institutions which are occupied with
the matter of providing loan to
smallerscale/private firms. MUDRA is
framed to accomplish the objective of
“funding the unfunded”. It deals with
the web-based interface for checking
the PMMY information. It takes
different duties or exercises allowed to
it. Notwithstanding of renegotiate,
MUDRA will likewise give credit
assurance to the qualified advances

25
gave according to the plan of Pradhan
Mantri Mudra Yojana.
FINANCIAL INCLUSION AND
PMMY
Reserve Bank of India had set up a
board under Shri Deepak Mohanty,
Executive Director to look the medium
term way on money related
incorporation. The board of trustees
shaped under the direction of Shri
Deepak Mohanty examined issue with
respect to credit and protection to the
monetarily avoided gathering’s
.Towards accomplishing full money
related consideration crosswise over
credit and protection Government of
India had propelled Pradhan Mantri
Mudra Yojana. There is a significant
26
prerequisite for improving the
monetary motor is MUDRA. Numerous
business people of small scale
undertakings have a place with the
monetarily weaker area of society so
that is the reason they can’t get to
money related administrations.
Subsidizing this unfunded area of the
general public is the primary point
behind the arrangement of Pradhan
Mantri MUDRA Yojana (PMMY). It gives
renegotiate and credit certification to
the loan specialists who back further in
such sort of exercises.
MUDRA awards advance such small
scale ventures which occupied with
exchanging, assembling and
administration division for credit sum
up to Rs. 10lakh. Miniaturized scale
27
undertakings build up a noteworthy
monetary segment in our country. It
gives expansive work after horticulture
in India. This financial part incorporates
smaller scale units, private venture
enroll in assembling, exchanging and
other segment. Smaller scale Finance is
a monetary advancement device
whose goal is to give wage creating
chances to the general population who
are fiscally rejected. It covers an
assortment of monetary
administrations which incorporate,
notwithstanding the arrangement of
credit, numerous other credit in
addition to administrations, money
related proficiency and other social
help administrations. The overdraft
allowed of Rs.5000 under Pradhan
28
Mantri Jan DhanYojana (PMJDY) is
additionally regarded as a piece of
MUDRA advances. Budgetary
consideration through PMMY expands
the open doors for credit necessity and
renegotiate.

DATA ANALYSIS PROGRESS

MADE UNDER PMMY
Government was set to disburse Rs
122188 crore loans to micro businesses
under the MUDRA scheme; it has been
accomplished by March 2016. For the
money related year 2016-2017
government was set focus of 180000
crore. The accomplishments and
advancement of PMMY is seen on a
week after week premise through a
PMMY gateway. Government focuses
29
to sanction Rs 1.22 lakh crore advances
to small scale organizations under the
MUDRA by March 2016. It is plan of
funding the unfunded. So far in the F.Y.
2015-2016, number of loan sanctioned
under PMMY is 34880924 that include
the sum authorized 137449.27 crores
and sum dispensed 132954.73 crores.
Initially the table.1 demonstrates the
progress under PMMY
Table.1 PMMY PROGRESS.
FINANCIAL YEAR 2015- FINANCIAL YEAR 2016-
2016 2017
No. of PMMY loan sanctioned 29953852 29953852
Amount Sanctioned 121034.61 137449.27
Amount Disbursed 116820.58 132954.73
Source: (http://www.mudra.org.in/)

CATEGORY WISE PERFORMANCE

TABLE 4. CATEGORY WISE PERFORMANCE *Amount in
crores

Financial Year : Financial Year :

2015-2016 2016-2017
CATEGOR NO.OF DISBURSE NO.OF DISBURSE % % %SHARE
YA A/Cs MENT A/Cs MENT CHAN CHAN DISBURSEMENTI
AMOUNT AMOUNT GE GE N2016-17
IN IN

30
 DISBU DISBU
RSE RSE
MENT MENT
in
2016
Women 27628 63190.4 29146 78249.8 23.8 46.0 46.2
Enterpren 265 894
eurs
12474 58908.1 99894 69974 19 42.9 41.3
New 668 70
Enterpren
eur
Minority 40882 13560.3 51545 19474.2 44 9.9 11.5
10 51
PMJDY 24172 274.02 14237 312.62 14 0.2 0.2
OD 19 15
Account
Mudra 51745 1391.25 18392 1515.84 9 1.0 0.9
card 6 4
Total 47125 137324 45898 169526 23.4 100 100
818 554
Source: (http://www.mudra.org.in/)

• The data present in the table shows

that the scheme is mostly favoured by
the entrepreneurs.Infact women
entrepreneurs are ahead in the
disbursement share. Before this
women used to face the difficulty of
getting the loan for business as they
are seen as less mature and less
capable of doing a business. So this

31
distrust over women leads to difficulty
in getting the loan for them.
• There is a share of PMJDY ie. Jan
Dhan Yojana in the MUDRA scheme
also which is 0.2 percent.
• The growth in the minority sector is
still not remarkable. Though the
Percentage share has increased but
they need to be focussed more.
SWOT ANALYSIS STRENGTHS
• The scheme can give support and
empower the needy people and small
business
• The scheme having the Interest rates
which are nominal
• It is very easy to apply for loan.

32
 • It also makes a credit guarantee to
the one who has taken the loan. It
means that the person will not only go
into debts. The government will also
have to bear the responsibility of the
loan.
• There are certain agents hired under
the committee who will guide on how
to organize and process a business so
that there are minimum risks of getting
a negative result. All the small business
units and sectors will be placed under
the surveillance, and a regular
evaluation will be made based on their
performance.
WEAKNESSES
• There can be a potential of conflict of
interest due to the nature of
33
rolesPradhan Mantri Mudra Yojna: A
Critical Review 105 and responsibilities
of MUDRA Bank.
• There can be the promotion of
shadow banking.
• There can be multiple regulators for
MFIs.
• There is unawareness about the
scheme
OPPORTUNITIES
• There can be more focus on job
creation
• There can be an extension of the
Scheme to personal sector other than
farms and factories.
• There can be more collaboration with
the MFIs.
34
• There can be more encouragement
for women entrepreneurs and can be
attached to the scheme .

THREATS
• There is a better solution to finance
micro and small businesses.
• There are number of already existing
refinancing agencies.
• There can be confusion due variable
interest rates.
RECOMMENDATIONS

• Scheme can be extended to personal

sector other than farms and factories.
They can start a loan funding of less
than Rs 50,000 so that the gap of 0-
50k can be fulfilled.
35
 • There should be more concentration
on the minority sector.
• MUDRA card can be used more
intensively in the future.
• Women entrepreneurs should be
more encouraged to wipe out the
difficulties faced by them.
MUDRA LOAN SCHEME
1. Brief background for introduction of
MUDRA Loan Scheme by Govt. of India.

As per NSSO survey (2013), there are

around 5.77 crore small/micro units in
the country, engaging around 12 crore
people, mostly individual
proprietorship/Own Account
Enterprises. Over 60% of units are
owned by persons belonging to
36
Scheduled Caste, Scheduled Tribe or
Other Backward Classes. Most of these
units are outside the formal banking
system, and hence are forced to
borrow from informal sources or use
their limited owned funds. MUDRA
Loan Scheme has been proposed to
bridge this gap. MUDRA Loan Scheme
will aim to increase the confidence of
the aspiring young person to become
first generation entrepreneurs as also
of existing small businesses to expand
their activities.
2. Brief details of the Product
MUDRA loans are extended by banks,
NBFCs, MFIs and other eligible
financial intermediaries as notified by
MUDRA Ltd. The Pradhan Mantri

37
MUDRA Yojana (PMMY) announced
by the Hon’ble Prime Minister on 8th
April 2015, envisages providing
MUDRA loan, upto ` 10 lakh, to
income generating micro enterprises
engaged in manufacturing, trading
and services sectors. The overdraft
amount of ` 5000 sanctioned under
PMJDY has been also classified as
MUDRA loans under Prime Minister
MUDRA Yojana (PMMY). The MUDRA
loans are extended under following
three categories :
3. Eligible borrowers
Individuals
Proprietary concern.
Partnership Firm.
Private Ltd. Company.
38
 Public Company.
Any other legal forms. The applicant
should not be defaulter to any bank or
financial institution and should have a
satisfactory credit track record. The
individual borrowers may be required
to possess the necessary
skills/experience/ knowledge to
undertake the proposed activity. The
need for educational qualification, if
any, need to be assessed based on the
nature of the proposed activity, and its
requirement.
4. Purpose of Assistance/Nature of
assistance
Need based term loan/OD
limit/composite loan to eligible
borrowers for acquiring capital assets
39
and/or working capital/marketing
related requirements. The MUDRA
loans are provided for income
generating small business activity in
manufacturing, processing, service
sector or trading. The Project cost is
decided based on business plan and
the investment proposed. MUDRA loan
is not for consumption/personal needs.
For the purpose of working capital
limit, MUDRA has launched a new
product called “MUDRA Card”, which is
a Debit card issued on RuPay platform,
and provides hassle free credit in a
flexible manner.
5. Amount of assistance
Upto to ` 10 lakh in three categories
viz. Shishu, Kishore and Tarun.

40
 6. Margin/Promoters Contribution
Margin/Promoters Contribution is as
per the policy framework of the bank,
based on overall guidelines of RBI in
this regard. Banks may not insist for
margin for Shishu loans.
7. Interest rate
Interest rates are to be charged as per
the policy decision of the bank.
However, the interest rate charged to
ultimate borrowers shall be
reasonable. Scheduled Commercial
Banks, RRBs and Cooperative Banks
wishing to avail of refinance from
MUDRA will have to peg their interest
rates, as advised by MUDRA Ltd., from
time to time.
8. Upfront fee/Processing charges.
41
Banks may consider charging of
upfront fee as per their internal
guidelines. The upfront fee/processing
charges for Shishu loans are waived by
most banks.
9. Security
A. First charge on all assets created out
of the loan extended to the borrower
and the assets which are directly
associated with the business/project
for which credit has been extended.
B. DPN (wherever applicable).
C. CGTMSE (wherever felt
desirable)/MUDRA Guarantee cover (as
and when introduced).

42
 In terms of RBI guidelines issued vide
Master Circular on lending to MSME
Sector (para 4.2) dated July 01, 2014, in
respect of loans upto ` 10 lakh, banks
are mandated not to accept collateral
security in the case of loans upto ` 10
lakh extended to units in the Micro
Small Enterprises (MSE) Sector. Banks
are required to encourage their branch
level functionaries to avail of the Credit
Guarantee Scheme cover, wherever
felt desirable.
10.Tenor of Assistance
Based on the economic life of the
assets created and also the cash flow
generated. However, MUDRA’s
refinance assistance will be for a
maximum tenor of 36 months which

43
will also be aligned to terms of
allotment of MUDRA funds by RBI from
time to time.
1. General Information and
Submission of EOI Response
1. Invitation for Expression of Interest
MUDRA invites 'Expression of Interest'
(EOI) from experienced and reputed
vendors for an online Loan appraisal
system for Pradhan Mantri MUDRA
Yojana as detailed in the scope of this
EOI. This EOI is an invitation only for
expression of interest for
implementation of the solution in the
Mudra & the EOI document is not a
recommendation, offer or invitation to
enter into a contract, agreement or any

44
other arrangement, in respect of the
services.
Guidelines for submission of EOI
This document should not be
construed as Tender / Request for
Proposal (RFP) in any form and would
be non-binding on the Mudra in any
manner whatsoever. The EOI
document is available for download
from our Official Website,
www.Mudra.in and also uploaded in
Central Public Procurement (CPP)
Portal of Government of India under
the link http://eprocure.gov.in/cppp/
Sealed EOI are invited from the eligible
bidders, which must be prepared in
accordance with the procedures stated
in this EOI document and submitted to

45
the CTO, MUDRA, Mumbai, not later
than the date and time as stated in the
time schedule given in the Critical
Information section in the beginning of
this EOI document. The address of the
Competent Authority to receive the
bids is given below. A drop box is
provided to receive the bids. The EOI
document is intended solely for the
information of the party to whom it is
issued (“the Recipient” or “the
Respondent” or “the Bidder”).
Bid Price
1. Non-refundable Bid Price of `1000/-
(` One thousand only) by way of
Banker’s Cheque/ Demand Draft/ Pay
Order drawn on a scheduled Mudra,
favouring ‘Micro Units Development &
46
Refinance Agency Limited’ payable at
Mumbai, must be submitted along with
EOI response.
2. Government organizations and
companies registered with MSME are
exempted from submission of bid
price.
3. The Mudra may, at its discretion,
reject any Bidder where the application
money has not been furnished with the
EOI response.
EOI Closing date
EOI Response should be received by
MUDRA not later than the time
mentioned in ‘Critical Information’
section before, at MUDRA Office
premises.

47
EOI Validity Period
The Bids must remain valid and open
for evaluation according to their terms
for a period of 90 days from the date of
the submission of bids .

Late EOI Policy

Responses received after the due
date / time i.e. bid submission date/
time would be considered late and may
not be accepted or opened. Late
received bids shall be returned un-
opened within 02 weeks from the bid
submission date.
Receiving of EOI Response
The submission of the response should
be in the format outlined in this EOI
and should be submitted only through
48
hand delivery. If the submission to this
EOI does not include all the documents
and information required or is
incomplete or submission is through
Fax mode, the EOI is liable to be
summarily rejected. All submissions,
including any accompanying
documents, will become the property
of MUDRA. The Recipient shall be
deemed to have licensed, and granted
all rights to the Mudra to reproduce
the whole or any portion of their
submission for the purpose of
evaluation and to disclose and/or use
the contents of the submission as the
basis for any resulting EOI process,
notwithstanding any copyright or other
intellectual property right of the
Recipient that may subsist in the
49
submission or accompanying
documents.
Non-Disclosure
The bidder shall not, unless the Mudra
has given permission in writing,
disclose any part or make use of any
part or whole of this EOI document,
any specification, plan, drawing,
pattern, sample or information
furnished by the Mudra (including the
users), in connection therewith to any
person other than a person employed
by the bidder in the performance of
the proposal.
Prime Bidder
The bidder may bring solutions for
some technical components from other
OEM/s . However, there must exist a
50
formal arrangement between the
OEM/s and the bidder for
update/upgrade and support of the
components. The Bidder will be
identified as the Prime Bidder and will
serve as the primary contact, and take
overall responsibility, including
obtaining the support from OEM,
wherever required. The Bidder must
fulfil Pre-Qualification Criteria in his
own capacity.
Requests for information
1. Recipients are required to direct all
communications for any clarification
related to this EOI, to the designated
Mudra officials and must communicate
the same in writing by the time
mentioned in ‘Critical Information’
51
section before. No query / clarification
would be entertained over phone.
2. All queries relating to the EOI,
technical or otherwise, must be in
writing only and may be sent via email.
The Mudra will try to reply, without
any obligation in respect thereof, every
reasonable query raised by the
Recipients in the manner specified.
However, the Mudra will not answer
any communication reaching the
Mudra later than the time stipulated
for the purpose.
3. The MUDRA may in its absolute
discretion seek, but under no
obligation to seek, additional
information or material from any
Respondents after the EOI closes and

52
allsuch information and material
provided must be taken to form part of
that Respondent’s response.
Respondents should invariably provide
details of their email address as
responses to queries will be provided
to all Respondents via email.
4. The Mudra may in its sole and
absolute discretion engage in
discussion with any Respondent (or
simultaneously with more than one
Respondent) after the EOI closes to
clarify any response.
Issue of Corrigendum
1. MUDRA will endeavor to provide
timely response to all queries.
However, MUDRA makes no
representation or warranty as to the
53
completeness or accuracy of any
response made in good faith.
2. At any time prior to the last date for
receipt of bids, MUDRA may, for any
reason, whether at its own initiative or
in response to a clarification requested
by a prospective Bidder, modify the EOI
Document by a corrigendum.
3. The Corrigendum (if any) will be
posted on the www.Mudra.in and also
under the link
http://eprocure.gov.in/cppp/ of CPP
Portal, GOI.
4. Any such corrigendum shall be
deemed to be incorporated into this
EOI.
5. In order to afford prospective
Bidders reasonable time in which to
54
take the corrigendum into account in
preparing their bids, MUDRA may, at
its discretion, extend the last date for
the receipt of EOI Bids.
Pre-Bid Meeting
1. The Mudra shall hold a pre-bid
meeting on the date and time
mentioned in ‘Critical Information’
section above. Purpose of the meeting
is to bring utmost clarity on the scope
of work and terms of the EOI being
floated. The Bidders are expected to
use the platform to have all their
queries answered. No query will be
entertained after the pre-bid meeting.
2. It would be the responsibility of the
Bidders to be present at the venue of
the meeting.
55
3. Clarification sought by bidder should
be made in writing (Letter/E-mail etc)
and submitted on or before the date as
indicated in the ‘Critical Information’
section. Mudra has discretion to
consider any other queries raised by
the bidder’s representative during the
pre-bid meeting.
4. The text of the clarifications asked
(without identifying the source of
enquiry) and the response given by the
Mudra, together with amendment to
the bidding document, if any, will be
posted on the MUDRA website
(www.mudra.org.in) and Central Public
Procurement Portal (CPPP) within a
reasonable time period of the pre-bid
meeting. It would be responsibility of

56
the bidder to check the websites
before final submission of bids.
5. If MUDRA, in its absolute discretion,
deems that the originator of the
question will gain an advantage by a
response to a question, then MUDRA
reserves the right to communicate such
response to all Respondents .

Important Instructions
Bidders must take the following points
into consideration during preparation
and submission of bids.
1. Authorised signatory must sign all
the pages of the response.
2. Relevant documents must be
submitted as proof wherever
necessary. All the pages must be sealed

57
and signed by the authorized signatory
of the respondent.
3. Faxed copies of any submission are
not acceptable and will be rejected by
the Mudra.
4. Responses should be concise and to
the point. Submission of irrelevant
documents must be avoided.
5. If the bids do not contain all the
information required or is incomplete,
the proposal is liable to be rejected.
6. The EOI is floated on MUDRA
website http://www.mudra.org.in and
also on Central Public Procurement
Portal (CPPP). MUDRA reserves the
right to change the dates mentioned
above. Changes and clarification, if any,
related to EOI will be posted on
58
MUDRA website and CPPP. Bidders
must have close watch on MUDRA
website and CPPP during the
intervening period before submitting
response to EOI

CONCLUSION
The study concluded that PMMY is a
great initiative taken by the GOI. Due
to it, there is a big change in the area
of micro finance. The scheme will help
the weaker section, low income group
and unfunded population and also will
increase the competition. Financial
inclusion through PMMY increases the
opportunities for credit requirement
and refinance. The introduction of the
national plan PMMY with other type of
59
financial inclusion initiative, yield a
valuable result. The PMMY conspire is
certain to take our country forward to
the future. MFIs contributed
significantly for the financing women
under PMMY. It perceives that because
of dispatch of this plan, monetary
consideration has expanded towards
positive heading. So it can be say that if
it is implemented properly, it may work
as a game changing financial inclusion
initiative of Government of India and
may boost the Indian economy

REFERENCES
1. From Internet
60
2. Wikipedia
3. Newspapers
4. Books
5. Articles

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