<h1>Government to Launch MUDRA Bank for Small Entrepreneurs with Rs. 23,000 Crore Fund, Prioritizing SC/ST Enterprises.</h1> The government plans to establish the Micro Units Development and Refinance Agency (MUDRA) Bank to provide loans to small entrepreneurs. Announced in the Union Budget 2015-16, MUDRA Bank will receive Rs. 20,000 crore from Priority Sector Lending shortfalls to create a Refinance Fund and Rs. 3,000 crore for a Credit Guarantee corpus. It will work through regional financing institutions, connecting with last mile lenders like MFIs, small banks, and others. Priority will be given to SC/ST enterprises. Initially, MUDRA Bank will operate as a subsidiary of the Small Industries Development Bank of India (SIDBI) until formal legal establishment.