Chennai: Pradhan Mantri Mudra Yojana (PMMY), one of the flagship schemes of the Narendra Modi-led government, has seen a spike of 53 per cent in non-performing assets in the first nine months of the current fiscal year, reports state.
As per the data obtained by a 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 31 December 2018 from 17.99 lakh on 31 March, 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 reports, the RBI had cautioned the Finance 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 8 April, 2015 to provide loan of up to Rs 10 lakh to non-corporate, non-farm small/micro enterprises.