Indian Economy News

Rs. 3.22 lakh crore sanctioned under PMMY against target of Rs. 3.50 lakh crore in FY 2020-21

Dr. Bhagwat Kisanrao Karad, Union Minister of State for Finance, stated that the government sets annual targets for the amount to be sanctioned by more than 150 Member Lending Institutions (MLIs) under the Pradhan Mantri Mudra Yojana (PMMY). In response to a question about PMMY targets, the Minister indicated that the national level targets have been routinely fulfilled from the scheme's establishment, with the exception of FY 2020-21 due to the COVID-19 pandemic. PMMY sanctioned Rs. 3.22 lakh crore (US$ 43.09 billion) in FY21, falling short of the objective of Rs. 3.50 lakh crore (US$ 46.83 billion).

MLIs provide institutional credit up to Rs. 10 lakhs (US$ 13,382) to micro/small business units under the scheme, for various activities. Since its start in April 2015, over 32.53 crore (4.4 million) loans of Rs. 17.32 lakh crore (US$ 231.77 billion) had been extended under PMMY, according to statistics supplied by MLIs on the Mudra portal. 
A number of actions that the government has made to strengthen the Scheme's implementation, including, among other things are: Online applications are available through the psbloansin59minutes and udyamimitra portals; some Public Sector Banks (PSBs) have implemented end-to-end digital lending for automated PMMY sanctions;  Intensive public awareness campaigns by PSBs and Mudra Ltd. to raise awareness of the Scheme among stakeholders; simplification of application forms; nomination of Mudra Nodal Officers in Public Sector Banks (PSBs) and ; quarterly monitoring of PSBs' PMMY performance. 
 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.