Nearly 3% of Mudra loans turn into bad loans: Govt
New Delhi: The government on Tuesday said close to 3 per cent of Rs 6.04 lakh crore worth of loans sanctioned under the Pradhan Mantri Mudra Yojana (PMMY) has turned into bad loans.
Prime Minister Narendra Modi launched the PMMY on April 8, 2015, for providing collateral free loans of up to Rs 10 lakh to non-corporate, non-farm small/micro enterprises with a view to generating employment, and providing access to easy finance to small enterprises.
In a written reply to a question on the PMMY in the Rajya Sabha, Minister of State for Finance Anurag Thakur also said any complaint received in respect of implementation of the PMMY, including turning down of loan applications, delay in turn-around-time (TAT) and lenders' insisting on collateral/guarantor on certain occasions, are redressed in coordination with the respective banks.
"Scheduled Commercial Banks (SCBs) and Regional Rural Banks (RRBs) have reported that as of March 2019, against a total amount of Rs 6.04 lakh crore disbursed by them under PMMY since inception of the scheme, an amount of Rs 17,251.52 crore had turned into Non-Performing Assets (NPAs), which is 2.86 per cent of the total disbursed amount," the minister said.
Loans are classified as MUDRA under the PMMY. The loans are given under three categories of Shishu, Kishore and Tarun to signify the stage of growth and funding needs of the beneficiary.
Replying to another question, the minister said during the last five financial years, the total number of branches of public sector banks (PSBs) increased to 87,580 at end-March 2019 from 78,939 as of March 2014 .
The minister also informed the House that PSBs wrote off Rs 47,658 crore, Rs 56,847 crore, Rs 79,048 crore, Rs 1,24,275 crore and Rs 1,86,632 crore during financial years 2014-15, 2015-16, 2016-17, 2017-18 and 2018-19, respectively, according to the RBI data.
Of these, write-offs in loans pertaining to 'agriculture and allied activities' were Rs 2,833 crore, Rs 6,361 crore, Rs 7,091 crore, Rs 10,345 crore and Rs 12,556 crore in those financial years respectively.
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
Chhattisgarh govt enforces austerity measures, restricts foreign travel and cuts convoy vehicles
Raipur (PTI): The Chhattisgarh government on Saturday rolled out a set of austerity measures, including restricted use of convoy vehicles for the chief minister, ministers and heads of state-run bodies, besides curbs on foreign travel at government expense.
The state has decided to implement the cost-saving steps with immediate effect to ensure efficient management of financial resources and discipline in public spending, said a directive issued by Finance Secretary Rohit Yadav.
The move follows Prime Minister Narendra Modi’s appeal for austerity amid the ongoing conflict in West Asia.
The order said that only essential vehicles should be used in the convoys of the CM, ministers and office-bearers of corporations, boards and commissions, while ensuring restrained use of other government resources.
It also directed departments to take steps for a phased conversion of all official vehicles into electric vehicles in order to promote the use of EVs.
As part of fuel-saving measures, expenditure on petrol and diesel for government vehicles should be kept to a minimum, the directive said.
Vehicle pooling arrangements should also be implemented for officials of departments travelling to the same destination, it added.
The order further stated that foreign travel of government employees at state expenses will be completely prohibited except under extremely unavoidable circumstances. In such cases, prior approval of the CM will be mandatory.
To reduce administrative expenditure, departments have been instructed to hold physical meetings preferably only once a month and encourage virtual and online meetings. Regular departmental review meetings should compulsorily be conducted through video conferencing, it said.
The government also stressed the need for energy conservation in its offices, directing that all electrical equipment, including lights, fans, air-conditioners and computers, must be switched off after office hours.
The directive will remain effective till September 30 this year.
Amid the war involving the US, Israel and Iran, Modi has suggested reducing petrol and diesel consumption, using metro rail services in cities, carpooling, increased use of EVs, utilising railway services for parcel movement and working from home to conserve foreign exchange.
