Union Cabinet approves hike in share capital of NMDFC

The Union Cabinet chaired by the Prime Minister Narendra Modi, has given its approval to increase the Authorised Share Capital of the National Minorities Development and Finance Corporation (NMDFC).
As per this decision, NMDFC’s Authorised Share Capital has doubled from Rs. 1500 crore to Rs. 3000 crore.
Cabinet also gave its approval to revise the shareholding pattern from present 65:26:9 to 73:26:1 among the Centre, States/Union Territories and Individuals/Institutions respectively. Further, approval was also given for restructuring of the NMFDC’s business model.

About National Minorities Development and Finance Corporation (NMDFC)

NMFC is Central Sector Public Enterprise (CPSE) under the aegis of Union Ministry of Minority Affairs.
It was constituted in 1994 as a non-profit making company under Section 25 of the Companies Act, 1956.
Function: NMDFC provides loans at concessional interest rates for self-employment and economic development activities to backward sections of minority communities having family income up to Rs. 1,03,000 in urban areas and Rs. 81,000 in rural areas.
In this case minority communities are Muslims, Christians, Sikhs, Buddhists and Parsis. It also includes Jains as they have been notified as a minority community recently in 2014.

Month: Current Affairs - February, 2015