Lok Sabha Question No. 138 (STARRED), answered on 2019-07-01
Subject: Irregularities under MUDRA Yojana
Ministry: FINANCE
Asked by: Nishikant  Dubey, Suresh Kodikunnil

## Government of India Ministry of Finance

## Department of Financial services LOK SABHA STARRED QUESTION No.*138

## TO BE ANSWERED ON 01stJULY, 2019/ ASHADHA10, 1941 (SAKA)

## Irregularities under MUDRA Yojana

*138 DR. NISHIKANT DUBEY: SHRI KODIKUNNILSURESH:

Willthe Minister of FINANCE be pleased tostate:

- a)  the  details  of  the  irregularities/frauds  reported  under  Pradhan  Mantri  MUDRA  yojana (PMMY) in the country during each of the last three years and the current year, State/UT -wise including district-wise details of Jharkhand State; (b) the details of inquiries initiated and responsibilities fixed by the Government in this regard till date; (c) whether the cases of Non-Performing Assets (NPA) under the PMMY are increasing in the  country  and  if  so,  the  action  taken  to  ascertain  the  situation  and  remedial  measures implemented; (d)  whether  out  of  the  three  categories  of  the  PMMY,  it  is  Shishu  accounts  or  small borrowerswhich forms higher NPA chunk; and (e)  If  so,  the  details  thereof  along  with  remedial  steps  taken  by  the  Government  including investigations carried out to find out possibility of irregularities in loan disbursal under Shishu
2. category to rule out malfeasance?

## ANSWER

## FINANCE MINISTER (Smt. Nirmala Sitharaman)

- (a) to (e):  A statement is laid on the Table of the House.

******

STATEMENT REFERRED IN REPLY TO THE LOK SABHA STARRED QUESTION NO. *138  TO  BE  ANSWERED ON 01 st   JULY,  2019  BY  DR  NISHIKANT  DUBEY  AND  SHRI KODIKUNNIL SURESH REGARDING IRREGULARITIES UNDER MUDRA YOJANA

- (a) Since inception of the Scheme, over 19 crore loans have been extended under Pradhan Mantri Mudra Yojana (PMMY) as on 21.06.2019. As per information compiled from    Public Sector Banks (PSBs), instances of alleged frauds reported during the last three years and the current year so far is in 2313 accounts. State-wise details including Jharkhand State is at Annexure . Of these, 2 accounts pertain to Jharkhand.
- (b) Examination/investigation has been initiated in all cases to ascertain lapses and fixing of accountability. Out of 103 delinquent employees identified, action has been taken on 68 as per extant guidelines.

(c)  to  (e)  As  reported  by  member  lending  institutions,  the total  Non-Performing  Assets (NPAs) as a percentage of credit disbursed has shown a nominal increase from 2.52% (FY 2017-18) to 2.68% (FY 2018-19 (provisional)). NPAs under Shishu category has shown a steady decline from 4.14 % in FY 2016-17 to 1.93% in FY 2017-18 and 1.29% (provisional) in  FY  2018-19  against  the  total  credit  disbursed  under  the  scheme.  Furthermore,  PSBs periodically monitor NPAs for recovery of overdue amounts and follow recovery procedures as per policies approved by their Boards and in compliance of extant Reserve Bank of India (RBI) guidelines.

| Annexure referred to in Lok Sabha Starred Question No 138 for answer 01.07.2019 State/UT-wise no of accounts in which fraud reported under PMMYduring last three year   | Annexure referred to in Lok Sabha Starred Question No 138 for answer 01.07.2019 State/UT-wise no of accounts in which fraud reported under PMMYduring last three year   | Annexure referred to in Lok Sabha Starred Question No 138 for answer 01.07.2019 State/UT-wise no of accounts in which fraud reported under PMMYduring last three year   | Annexure referred to in Lok Sabha Starred Question No 138 for answer 01.07.2019 State/UT-wise no of accounts in which fraud reported under PMMYduring last three year   | Annexure referred to in Lok Sabha Starred Question No 138 for answer 01.07.2019 State/UT-wise no of accounts in which fraud reported under PMMYduring last three year   | Annexure referred to in Lok Sabha Starred Question No 138 for answer 01.07.2019 State/UT-wise no of accounts in which fraud reported under PMMYduring last three year   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| State                                                                                                                                                                   | 2016-17 No. of Accounts                                                                                                                                                 | 2017-18 No. of Accounts                                                                                                                                                 | 2018-19 No. of Accounts                                                                                                                                                 | 2019-20 (as on date) No. of Accounts                                                                                                                                    | Total No. of                                                                                                                                                            |
|                                                                                                                                                                         |                                                                                                                                                                         |                                                                                                                                                                         |                                                                                                                                                                         |                                                                                                                                                                         | Accounts                                                                                                                                                                |
| Andhra Pradesh                                                                                                                                                          | 6                                                                                                                                                                       | 29                                                                                                                                                                      | 206                                                                                                                                                                     | 0                                                                                                                                                                       | 241                                                                                                                                                                     |
| Bihar                                                                                                                                                                   | 0                                                                                                                                                                       | 0                                                                                                                                                                       | 1                                                                                                                                                                       | 37                                                                                                                                                                      | 38                                                                                                                                                                      |
| Gujarat                                                                                                                                                                 | 0                                                                                                                                                                       | 5                                                                                                                                                                       | 22                                                                                                                                                                      | 0                                                                                                                                                                       | 27                                                                                                                                                                      |
| Haryana                                                                                                                                                                 | 24                                                                                                                                                                      | 1                                                                                                                                                                       | 19                                                                                                                                                                      | 0                                                                                                                                                                       | 44                                                                                                                                                                      |
| Delhi                                                                                                                                                                   | 1                                                                                                                                                                       | 65                                                                                                                                                                      | 0                                                                                                                                                                       | 0                                                                                                                                                                       | 66                                                                                                                                                                      |
| Punjab                                                                                                                                                                  | 0                                                                                                                                                                       | 0                                                                                                                                                                       | 201                                                                                                                                                                     | 0                                                                                                                                                                       | 201                                                                                                                                                                     |
| Maharashtra                                                                                                                                                             | 6                                                                                                                                                                       | 46                                                                                                                                                                      | 73                                                                                                                                                                      | 30                                                                                                                                                                      | 155                                                                                                                                                                     |
| Madhya Pradesh                                                                                                                                                          | 0                                                                                                                                                                       | 0                                                                                                                                                                       | 17                                                                                                                                                                      | 0                                                                                                                                                                       | 17                                                                                                                                                                      |
| Assam                                                                                                                                                                   | 0                                                                                                                                                                       | 0                                                                                                                                                                       | 3                                                                                                                                                                       | 0                                                                                                                                                                       | 3                                                                                                                                                                       |
| Uttar Pradesh                                                                                                                                                           | 135                                                                                                                                                                     | 39                                                                                                                                                                      | 34                                                                                                                                                                      | 5                                                                                                                                                                       | 213                                                                                                                                                                     |
| Tamilnadu                                                                                                                                                               | 0                                                                                                                                                                       | 67                                                                                                                                                                      | 276                                                                                                                                                                     | 1                                                                                                                                                                       | 344                                                                                                                                                                     |
| Telangana                                                                                                                                                               | 0                                                                                                                                                                       | 50                                                                                                                                                                      | 13                                                                                                                                                                      | 1                                                                                                                                                                       | 64                                                                                                                                                                      |
| Karnataka                                                                                                                                                               | 0                                                                                                                                                                       | 16                                                                                                                                                                      | 1                                                                                                                                                                       | 0                                                                                                                                                                       | 17                                                                                                                                                                      |
| Himanchal Pradesh                                                                                                                                                       | 0                                                                                                                                                                       | 0                                                                                                                                                                       | 0                                                                                                                                                                       | 0                                                                                                                                                                       | 0                                                                                                                                                                       |
| Jharkhand                                                                                                                                                               | 0                                                                                                                                                                       | 2                                                                                                                                                                       | 0                                                                                                                                                                       | 0                                                                                                                                                                       | 2                                                                                                                                                                       |
| Rajasthan                                                                                                                                                               | 0                                                                                                                                                                       | 71                                                                                                                                                                      | 123                                                                                                                                                                     | 0                                                                                                                                                                       | 194                                                                                                                                                                     |
| West Bengal                                                                                                                                                             | 167                                                                                                                                                                     | 18                                                                                                                                                                      | 1                                                                                                                                                                       | 0                                                                                                                                                                       | 186                                                                                                                                                                     |
| Odisha                                                                                                                                                                  | 0                                                                                                                                                                       |                                                                                                                                                                         | 201                                                                                                                                                                     | 0                                                                                                                                                                       | 201                                                                                                                                                                     |
| Kerala                                                                                                                                                                  | 1                                                                                                                                                                       | 10                                                                                                                                                                      | 1                                                                                                                                                                       | 0                                                                                                                                                                       | 12                                                                                                                                                                      |
| Chandigarh                                                                                                                                                              | 0                                                                                                                                                                       | 224                                                                                                                                                                     | 51                                                                                                                                                                      | 0                                                                                                                                                                       | 275                                                                                                                                                                     |
| Chhatisgarh                                                                                                                                                             | 3                                                                                                                                                                       | 0                                                                                                                                                                       | 8                                                                                                                                                                       | 0                                                                                                                                                                       | 11                                                                                                                                                                      |
| Uttrakhand                                                                                                                                                              | 0                                                                                                                                                                       | 0                                                                                                                                                                       | 2                                                                                                                                                                       | 0                                                                                                                                                                       | 2                                                                                                                                                                       |
| Total                                                                                                                                                                   | 343                                                                                                                                                                     | 643                                                                                                                                                                     | 1253                                                                                                                                                                    | 74                                                                                                                                                                      | 2313                                                                                                                                                                    |

Source: As per information provided by PSBs