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

Over 32.53 crore loans with sanctioned amount of ₹ 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.

The Minister stated that MLIs in turn fix their respective State-wise target according to potential of the area, their presence and other related parameters. Targets allocated to MLIs vis-à-vis achievements in FY 2020-21 are ANNEXED.

Responding to a question on targets of PMMY, the Minister stated that the national level targets under the scheme have been consistently met since inception of the scheme, except for FY 2020-21 due to COVID-19 pandemic. In FY 2020-21, an amount of ₹ 3.22 lakh crore was sanctioned under PMMY against the target of ₹ 3.50 lakh crore.

Under the Scheme, institutional credit up to ₹ 10 lakh is provided by MLIs to micro/small business units for income generating activities in manufacturing, trading, services sectors and also for activities allied to agriculture.

As per data uploaded by MLIs on Mudra portal, the Minister stated that as on 31.12.2021, over 32.53 crore loans involving a sanctioned amount of ₹ 17.32 lakh crore have been extended under PMMY, since its inception in April, 2015.

The Minister listed out a number of steps that have been taken by the Government to improve implementation of the Scheme, which, inter alia, include:

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

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

PMMY target shortfall acknowledged; scheme provides institutional credit to micro and small enterprises with expanded digital delivery measures. Pradhan Mantri Mudra Yojana (PMMY) experienced a target shortfall in FY 2020-21 attributed to the pandemic; the scheme channels institutional credit via over 150 Member Lending Institutions that set State wise targets, and cumulative loan sanctions since April 2015 are reported on the Mudra portal. Government measures to enhance implementation include online application portals, digital lending by some public banks, publicity, simplified forms, nomination of Mudra Nodal Officers, and periodic monitoring, while banks remain bound by RBI customer confidentiality obligations.