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Of the total ‘fraud’ accounts reported under the Pradhan Mantri Mudra Yojana (PMMY), southern States take two of the top slots.
According to Finance Minister Nirmala Sitharaman’s statement presented to the Lok Sabha recently, 15 per cent of fraud Mudra accounts are from Tamil Nadu, followed by Chandigarh (12 per cent) and Andhra Pradesh (10 per cent). Instances of alleged fraud were reported in 2,313 accounts nationwide, of which, Tamil Nadu accounted for 344.
These, along with Uttar Pradesh and Punjab (9 per cent fraud accounts each), accounted for 55 per cent of the fraud Mudra accounts in the country. As on July 12, over 19.24 crore loans amounting to ₹9.45-lakh crore have been extended to borrowers across the country under the PMMY. Of this, over 76.87 lakh loans amounting to ₹32,910.3 crore were sanctioned to borrowers in the North-East.
Himachal Pradesh is the only State where no fraudulent account was reported in the four years that the scheme has been operational.
Chhattisgarh, Assam, Jharkhand and Uttarakhand reported the least number (less than 1 per cent) of fraud accounts while Gujarat, Madhya Pradesh, Karnataka and Kerala accounted for 1 per cent each. Odisha, West Bengal, Rajasthan and Maharashtra, among others, accounted for 7- 9 per cent fraud accounts.
Fixing the issue
Examination/investigation has been initiated in all the cases to determine the lapses and fix accountability. Out of 103 delinquent employees identified, action has been taken against 68.
Any citizen who is eligible to take a loan and has a business plan for a non-farm income generating activity, such as manufacturing, processing, trading or services, and whose credit need is up to ₹10 lakh, can avail credit under PMMY. As reported by Member Lending Institutions (MLIs), the total non-performing assets (NPAs) under Mudra as a percentage of credit disbursed was 2.89 per cent in FY17, 2.52 per cent in FY18 and 2.68 per cent in FY19 (provisional).
According to the Centre, the reasons for Mudra NPAs include first-time borrowers under the Shishu category prioritising emergent needs, business failures, inefficiencies in lending practices, poor credit appraisal, wilful defaults and impaired cash flows due to slowdown in business, etc.
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