Over 32.53 Crore Loans with Sanctioned Amount of Rs.17.32 lakh Crore Extended under PMMY Since Inception

Under Pradhan Mantri Mudra Yojana (PMMY), the Government allocates annual targets for the amount to be sanctioned by more than 150 Member Lending Institutions (MLIs). This was stated by Union Minister of State for Finance Dr Bhagwat Kisanrao Karad in a written reply to a question in Rajya Sabha today.

According to the Minister, MLIs set their respective State-wide targets based on the potential of the area, their presence, and other relevant characteristics. The targets assigned to MLIs in relation to accomplishments in FY 2020-21 are ANNEXED.

In response to a question about PMMY aims, the Minister indicated that the scheme’s national level targets have been routinely fulfilled since its commencement, with the exception of FY 2020-21 owing to the COVID-19 pandemic. Under PMMY, an amount of Rs. 3.22 lakh crore was sanctioned in FY 2020-21, against a target of Rs. 3.50 lakh crore.

MLIs under the Scheme provide institutional credit of up to Rs. 10 lakh to micro/small business units for income-generating activities in the manufacturing, trading, and services sectors, as well as activities related to agriculture.

According to data supplied by MLIs to the Mudra portal, the Minister revealed that as of 31.12.2021, over 32.53 crore loans totaling Rs. 17.32 lakh crore had been granted under PMMY since its start in April 2015.

The Minister outlined a number of actions that the government has taken to strengthen Scheme implementation, including, but not limited to:

i. provision for online applications through psbloansin59minutes and udyamimitra portal;
ii. some of the Public Sector Banks (PSBs) have put in place end-to-end digital lending for automated sanctions under PMMY;
iii. intensive publicity campaigns by PSBs and Mudra Ltd. for increased visibility of the Scheme amongst the stakeholders;
iv. simplification of application forms;
v. nomination of Mudra Nodal Officers in Public Sector Banks (PSBs);
vi. periodic monitoring of performance of PSBs with regard to PMMY etc.

The Minister also stated that, according to Paragraph 25 of the RBI‘s Master Circular no. RBI/2015-16/59 dated 01.07.2015 on ‘Customer Confidentiality Obligations,’ banks are required to maintain secrecy arising from the contractual relationship between the banker and the customer, and as such, no information should be disclosed to third parties, except under the circumstances specified in the circular.