PM Modi has propagated ample amount of schemes under his tenure, one such is Pradhan Mantri Mudra Yojana (PMMY). However, this scheme has drawn criticism by none other than Reserve Bank of India (RBI).

RBI has raised concerns on the rise of bad loans under the Mudra Yojana scheme. Media reports show that RBI has warned Finance Ministry that this scheme may create a problem in the banking system. There has been a rise in bad loans amounting to Rs 11,000 crores. This might turn into Non-Performing Assets (NPAs). Due to this, there will be distress on the economy as well.

Actually, PM Modi launched this scheme back in 2015 whose aim was to provide loans to micro-enterprises. The same scheme has brought bad news for the government as well as for the economy. This can invite the bad loans to become a big source of NPAs. Non-performing assets is that money which has close to zero possibility of coming back to the banks.

This means that Modi government’s Mudra Scheme is a failure which has only increased the burden on the economy. There were already bank frauders who contributed to the NPA, now government schemes have become an additional reason for that.

How will PM Modi deal with these NPAs which have become a trend in ‘New India’?


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