2,313 frauds reported in Mudra loan accounts

New Delhi, July 1 () Up to 2,313 accounts of Pradhan Mantri Mudra Yojana (PMMY) with public sector banks reported cases of fraud since fiscal year 2016-2017, Parliament reported Monday.

Since the beginning of the plan, more than 19 million loans have been granted under PMMY as of June 21, 2019.

According to information collected from public sector banks (PSB), the cases of alleged frauds reported during the last three years and the current year so far are 2,313 accounts, said Finance Minister Nirmala Sitharaman in a written response to the Lok Sabha.

He also said that the examination/investigation has been initiated in all cases to determine the lapses and the determination of responsibility.

Of the 103 identified delinquent employees, 68 measures have been taken according to the existing guidelines.

The largest number of frauds was reported from Tamil Nadu (344), followed by Chandigarh (275) and Andhra Pradesh (241).

The minister also said that, as reported by the member credit institutions, the total of non-productive assets (NAP) as a percentage of the disbursed credit has shown a nominal increase of 2.52 percent (2017-2018) to 2.68 percent in 2018 -19 (provisional).

Lok Sabha was also informed that unproductive assets (NPA) in the Shishu category have shown a steady decline from 4.14 percent in 2016-17 to 1.93 percent in 2017-18 and to 1.29 percent ( provisional) in 2018-19 against the total credit disbursed under the scheme.

In addition, the PSB periodically monitor the NPAs to recover the amounts due and follow the recovery procedures according to the policies approved by their boards and in compliance with the current guidelines of the Reserve Bank of India. Under the PMMY, Mudra has created three products, 'Shishu', 'Kishore' and 'Tarun', to indicate the stage of growth and the financing needs of the beneficiary. NKD HRS