Pradhan Mantri Mudra Yojana (PMMY) loans worth Rs 7,277 cr turn bad

The government Tuesday informed Parliament that loans worth Rs 7,277.31 crore of public sector banks under Pradhan Mantri Mudra Yojana (PMMY) have turned bad at the end of March 2018. Loans extended under PMMY from inception of the scheme up to March 2018 by all member lending institutions (MLIs) were Rs 5.71 lakh crore, Minister of State for Finance Shiv Pratap Shukla said in a written reply to the Rajya Sabha. 

Loans under PMMY can be covered under Credit Guarantee Fund for Micro Units (CGFMU), he said. CGFMU has been formed with the purpose of guaranteeing payment against default in micro loans up to Rs 10 lakh extended to eligible borrowers by the MLIs, he said.

"As on 01.02.2019, over 15.73 crore loans amounting to Rs 7.59 lakh crore have been extended by MLIs under PMMY, since inception of the scheme. Almost 73 per cent of the loans under PMMY have been extended to women borrowers," Shukla said. Replying to another question, Shukla said the RBI has apprised that the list of suit-filed defaulters of Rs 1 crore and above and the list of suit-filed wilful defaulters of Rs 25 lakh and above are available in public domain on the websites of Credit Information Companies (CICs).

"RBI has also apprised that the list of non-suit filed defaulters of Rs 1 crore and above and non-suit filed wilful defaulters of Rs 25 lakh and above is confidential in nature and is exempted from disclosure under section 45E of the Reserve Bank of India Act, 1934," he said. Further, the RBI has advised all banks and financial institutions to submit the said list to all CICs directly and not to the RBI from December 2014 onwards.

The RBI has further apprised that the list of suit-filed wilful defaulters is compiled on quarterly basis and compilation of the list as on 31st December 2018 is under process, the minister added. In an another reply, Shukla said as on January 15, (2019), 3,07,485 returns, including 36,616 cases of refunds, are pending for scrutiny.

The scrutiny of these cases is to be completed by December 31, 2019 and about 16.21 lakh claims of refund (including non-scrutiny cases) are pending for issue as on January 31, 2019.