Current Affairs - January, 2019

RBI cautions on NPAs due to MUDRA Loans

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.

Right to Disconnect Bill introduced in Lok Sabha

A private members bill, Right to Disconnect Bill was introduced in the Lok Sabha by MP Supriya Sule.

Features of the Bill

The important features of the bill are:

  • The bill empowers the employee with the right to not respond to employers’ calls, texts or emails after office hours.
  • The bill aims to reduce work-related stress and strive for a better work-life balance.
  • The bill applies to companies with more than 10 employees.
  • Such companies are required to set up an Employee Welfare Committee to ensure compliance.
  • The bill stipulates that no disciplinary action can be taken against you if you choose to not respond to your employer after your stipulated work hours.

Global Examples

Some measures have been already taken in empowering the employees with Right to disconnect. For Example:

  • France has already provided Right to disconnect since 2017 in companies with more than 50 employees with an aim to re-build the boundary between professional and personal life.
  • Even Spain has a similar law which provides Right to Disconnect without any minimum employee criterion.
  • German automobile maker Daimler had taken this bold step of introducing software that automatically deletes any emails you get while on vacation, back in 2014.

What is the Importance to Right to Disconnect?

Studies found that the need to be available 24X7 was adversely affecting the workers, even if workers weren’t actively checking work emails after hours, they can still be harmed by the expectation that they should be available. This work culture was creating anxiety amongst workers.

Studies also showed that workers who answered work-related emails after 9pm had worse quality of sleep. Hence a campaign had gained ground demanding Right to Disconnect.