Spelling trouble for the banking sector, the government’s flagship scheme PM Mudra Yojana (PMMY) has seen a rise in NPAs to the tune of 53% in all of the 3 segments i.e. Shishu, Kishore and Tarun, to Rs 14,930.98 crore from Rs 9,769.99 crore last year, during the first none months of the current fiscal year, The Indian Express reported.
As per the data obtained from the Micro Units Development and Refinance Agency (MUDRA) under the RTI Act, the total number of Mudra loan NPA accounts increased from 17.99 lakh on March 31, 2018to 28.83 lakh as on December 31 2018.
The flagship scheme launched on April 8, 2015 caters to non-farm small or micro entities and non-corporate by offering small loans of up to Rs. 10 lakh.
RBI on an earlier instance, red flagged the hike in NPAs under PM Mudra Yojana and warned the ministry that the scheme can prove to be the next big source of non-performing assets for the banking industry. The bad loans under the scheme have scaled to Rs. 11,000 crore.
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