I found an excellent article by S.Gurumurthy link is below
com/columns/s_gurumurthy/ MUDRA-Bank-Theoretical-Depth- and-Practical-Wisdom/2015/03/ 10/article2706479.ece
I liked to comment on this article.
The article on Mudra bank is actually laudable.
But what you should not miss is that the Small and Micro businesses depend on large businesses for getting them orders. Many also depend on them for getting the knowhow as they(Micro Businesses) are headed by many ex-employees ( of large corporations). Secondly they some times even depend on them for manpower ( training and to recruit employees). I agree finance is one of the reasons they(Small and micro businesses) might flounder. But technical know how and technology sharing are also reasons they might find a roadblock in their business.
Most big companies would prefer to support micro businesses because of security of company information, non disclosure of technology transfered etc. Companies prefer to develop dedicated suppliers. But once technology is transfered it is just a matter of time before it becomes public knowledge (not to mention Corporate theft of Information). This is in spite of the rapport the micro businesses have with the Big corporates whom they supply.
Nonetheless this act of creating a Mudra Bank is very much welcome. If you look at why micro companies fail it is first Credit (non availability), Next is non belief of the big corporates to trust them (for technology transfer) and another is obsolescence of the technology they are using. These are just a few that came to my mind.
All three dimensions are important and it must be taken care of by Mudra bank. In which case it is an excellent initiative by the Modi Government