The Reserve Bank of India (RBI) has voiced concern on the spike in non-performing assets (NPAs) under the government’s flagship scheme Pradhan Mantri Mudra Yojana to support micro-enterprises in the country.
Disbursements under Pradhan Mantri Mudra Yojana
The annual report of the Pradhan Mantri Mudra Yojana provides following data about the disbursements under the Pradhan Mantri Mudra Yojana:
- The total disbursements under the scheme stood at Rs 2.46 trillion in FY 18.
- 40 per cent of these disbursements went to women entrepreneurs and 33 per cent to social categories.
- More than 4.81 crore micro-borrowers have benefited through the scheme.
The RBI has raised the red flag over the Pradhan Mantri Mudra Yojana since the bad loans under the scheme have increased to Rs 11,000 crore.
Pradhan Mantri Mudra Yojana
Pradhan Mantri MUDRA Yojana (PMMY) launched in 2015 aims to provide loans up to 10 lakh to the non-corporate, non-farm small/micro enterprises. The loans are provided through Commercial Banks, RRBs, Small Finance Banks, Cooperative Banks, MFIs and NBFCs. The Mudra loans are provided under three categories:
- Under Shishu up to Rs 50,000 under.
- Under Kishore for loans between Rs 50,001-Rs 5 lakh.
- Under Tarun for loans between Rs 5,00,001 and Rs 10 lakh category.
The categories signify the stage of growth/development and funding needs of the beneficiary microunit/entrepreneur and also provide a reference point for the next phase of graduation/growth.