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Bad loans under Mudra scheme surged 53% in current fiscal, says report

Bad loans under Mudra scheme surged 53% in current fiscal, says report

Bad loans under Mudra scheme surged 53% in current fiscal, says report
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By CNBC-TV18 Mar 13, 2019 11:55 AM IST (Updated)

Pradhan Mantri Mudra Yojana (PMMY), one of the flagship schemes of the Narendra Modi-led government, has seen a spike of 53 percent in non-performing assets in the first nine months of the current fiscal year, The Indian Express reported.

Pradhan Mantri Mudra Yojana (PMMY), one of the flagship schemes of the Narendra Modi-led government, has seen a spike of 53 percent in non-performing assets in the first nine months of the current fiscal year, The Indian Express reported.

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As per the data obtained by newspaper under the RTI Act from the Micro Units Development and Refinance Agency (MUDRA), the total number of Mudra loan NPA accounts increased to 28.83 lakh as on December 31 2018 from 17.99 lakh on March 31, 2018.
Earlier, the Reserve Bank of India (RBI) had raised a red flag on the spike in non-performing assets under Mudra scheme. According to finance ministry sources, RBI had cautioned the ministry that the scheme might turn out to be the next big source of NPAs, which have plagued the banking system. The central bank has flagged that bad loans under PMMY have risen to Rs 11,000 crore.
The flagship scheme was launched by the government on April 8, 2015 to provide loan of up to Rs 10 lakh to non-corporate, non-farm small/micro enterprises.
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