Pradhan Mantri Mudra Yojana : Evaluation, Experiences and Future Prospects

Abstract

To foster financial inclusion and promote the growth of micro-entrepreneurship,the government of India had launched the MUDRA programme in 2015. The basic idea behind thisgovernment initiative is to provide help to Non-Corporate Small Business Sector (NCSBS) in fulfilling their monetary needs and also making possible the establishment of moremicro-finance institutions. Moving ahead from the primarypurpose of microfinance, the MUDRA BANK is focusing onproviding funds to the lower-income segment. In a number of rising nations, monetaryavenues for the needy ones through regular channels of financehave failed at an extent. The reasons behind this are higher risk and the higher transaction costs relatedto micro credits and saving deposits. These are some of the reasons formaking them susceptible. It is too anticipated that in rising nations, the regular financial services reach merely to top one-fourth of the economically active people, leaving behind the rest. India is no exception to this. Government of India, by adopting the MUDRA scheme, has mentionedprovidingloans of maximum ten lakhs in these three categories, namely, Shishu, Kishore and Tarun,all of them through MUDRA Bank. The National Bank for Agriculture and Rural Development (NABARD) has been assigned responsibility to keep an eye on the policy’s progress. The authors of this paper have attempted to develop a comprehensive analysis of the progress of MUDRA scheme by taking the help of the annual PMMY reports published by the government. This paper will be of significant use to academicians/scholars and curious citizens who desire to have a ready reference to understand the progress of the MUDRA YOJANA