As if taking a clue from the loan melas organised during Congress regime, public sector banks (PSBs) have doled out crores of rupees under the Pradhan Mantri Mudra Yojana (PMMY), reveals a reply received under Right to Information (RTI). State Bank of India (SBI) has sanctioned loans worth Rs86,293.37 crore, followed by Bank of Baroda, which granted loans of Rs14,974.32 crore. While the state-run banks are on a spree to provide loans under PMMY, the Reserve Bank of India (RBI) had raised a red flag on spike in non-performing assets (NPAs) under the scheme.
In addition, all these loans under PMMY are collateral free loans and to mitigate the issue MUDRA or Micro Units Development and Refinance Agency Ltd, offers credit guarantee fund for micro units (CGFMU).
Interestingly, most of the PSBs who have replied to the RTI application have stated that they have no information or do not maintain data on total number of loan proposals received under the PMMY. United Bank of India, however, replied that it had received 3.04 lakh applications under the loan scheme. Here are the points on which information was sought from PSBs under RTI.
- Total number of loan proposals received under the Prime Minister Mudra Yojana (PMMY)
- Total number of loans sanctioned out of the loan proposals received
- Cumulative amounts of the loans sanctioned under PMMY
- Maximum amount of loan sanctioned under PMMY to a single beneficiary
- Minimum amount of loan sanctioned under PMMY to a single beneficiary
So far, seven lenders have replied to the RTI. All banks have made sure to follow the rules of loan under PMMY and sanctioned loans ranting from Rs5,000 to Rs10 lakh to an individual borrower.
Here are the questions asked and replies received from seven PSBs under the RTI Act…

According to Mudra.org.in, during FY18-19, a total loan worth Rs2,82,594.30 crore was sanctioned for 5.41 crore proposals. Out of this sanctioned loan, so far an amount of Rs2,73,748.57 crore has been disbursed to borrowers by lenders, the portal says.
RBI Not Happy with Increasing NPAs in PMMY
As per the annual report of PMMY, 2017-18, total disbursements under the scheme stood at Rs2.46 lakh crore in FY2018.
Out of this, 40% were disbursed to women entrepreneurs and 33% to social categories. More than 4.81 crore micro borrowers have benefited through PMMY during the year FY2017-18.
The PMMY was launched on 8 April 2015. Under the scheme, banks are required to finance micro and small entrepreneurs for up to Rs10 lakh. Loans can be granted under three categories - up to Rs50,000 under 'Shishu'; Rs50,001-Rs5 lakh under ‘Kishore' and between Rs5,00,001 and Rs10 lakh under ‘Tarun' category.
In addition, RBI's caution comes at a time when the country's financial system in reeling under severe stress due to the IL&FS crisis, which continues to hurt banks with impairments.
Pure politics, as always PSB’s had to take the blunt.
Further one may be surprised to know even after massive disbursements, a huge numbers of small industries/business have been left out. That is the paradoxical situation. Most of the issues pertain to seriousness in implementing such schemes. Bank soldiers have not been doing their jobs efficiently.