Former RBI Governor flags risks in MUDRA, Kisan credit card loans in his report to MP's panel.
Former RBI Governor Raghuram Rajan has cautioned that the next crisis in India's banking sector could come from loans given to the unorganized micro and small businesses, called MUDRA loans, and credit extended through the Kisan credit card.
MUDRA loans are offered under the Prime Minister Mudra Yojana or PMMY, launched in 2015 by the NDA government.
A total of ₹6.37 lakh crore has been disbursed under the scheme by public and private sector banks, regional rural banks and micro-finance institutions till date, as per the data from the Micro Units Development and Refinance Agency (MUDRA) website.
In a note on bank non-per-forming assets (NPAs), prepared at the request of Murli Manohar Joshi, Chairman of the Parliament Estimates Committee, Dr. Rajan said the government should refrain from setting ambitious credit targets or waiving loans.
This story is from the September 12, 2018 edition of The Hindu.
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This story is from the September 12, 2018 edition of The Hindu.
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