28.89 cr loans worth ₹17.77 lakh cr sanctioned under Mudra Yojana; 67% belong to women: Govt

Over 28.89 crore loans worth ₹17.77 lakh crore have been disbursed under the Pradhan Mantri Mudra Yojana (PMMY) during the last five financial years from April 1, 2018, to March 31, 2023, says Bhagwat Kisanrao Karad, Union Minister of State for Finance. The minister said this in response to a query in the Rajya Sabha on Tuesday, highlighting the significant impact of the scheme on promoting financial inclusion and supporting small businesses.

He said that out of the total loans sanctioned under PMMY, more than 19.22 crore loans, equivalent to ₹7.93 lakh crore, have been extended to women borrowers. This accounts for approximately 67% of the overall loans disbursed under the scheme, underscoring the focus on fostering economic opportunities for women.

The PMMY aims to facilitate collateral-free institutional credit to micro or small business units. Member Lending Institutions (MLIs), including Scheduled Commercial Banks (SCBs), Regional Rural Banks (RRBs), Non-Banking Financial Companies (NBFCs), and Micro Finance Institutions (MFIs), play a crucial role in providing credit up to ₹10 lakh to eligible entities. These funds are intended for income-generating activities in diverse sectors such as manufacturing, trading, services, and activities allied to agriculture.

The minister also shared data on Pradhan Mantri Jan Dhan Yojana (PMJDY), saying that as of November 29, 2023, 51.04 crore accounts have been opened under the scheme, amassing a collective deposit balance of ₹2,08,855 crore.

As the National Mission for Financial Inclusion, PMJDY was launched on August 28, 2014, to ensure comprehensive financial inclusion across the nation by providing universal access to banking facilities and extending basic bank accounts to every unbanked adult.

He said the PMJDY does not incorporate an inbuilt provision for micro-investments, such as flexi-recurring deposits. However, account holders under PMJDY are eligible to avail themselves of the benefits of micro-investments, including flexi-recurring deposits.

Providing further insights, the minister highlighted that, as of 22 November 2023, a total of 4.30 crore PMJDY accounts maintained a zero balance. PMJDY accounts aren’t required to maintain a minimum balance, thereby fostering financial inclusion without imposing financial constraints on the account holders.

“As on 22.11.2023, a total of 4.30 crore PMJDY accounts have zero balance since the scheme provides an inbuilt feature of non-requirement of maintaining any minimum balance in PMJDY accounts,” the minister states.

Recently, Bhagwat Kisanrao Karad had shared data in Parliament on the total volume of digital payment transactions in India, saying that they surged from 2,071 crore in FY 2017-18 to 13,462 crore in FY 2022-23, achieving a Compound Annual Growth Rate (CAGR) of 45%.