8468022022 www.visionias.
in
» Inputs required for a customer to do a transaction under this scenario are: Bank Name;
Aadhaar Number; Biometrics captured during enrolment.
» It is also used for disbursements of government entitlements like MNREGA, Social Security
pension, Handicapped Old Age Pension etc. of any Central or State Government bodies
Key achievement of PMJDY
Increased Financial Inclusion: 53 crore people brought into the formal banking system through Jan
Dhan Accounts.
Rural and Women Empowerment: 67% of the accounts opened in rural or semi-urban areas, and 55%
of accounts have been opened by women.
Financial Services: Rs. 2.3 lakh crore in deposits, with over 36 crore free-of-cost RuPay cards issued.
Key issues with the scheme
Infrastructure Gaps: Poor connectivity in remote areas (North East, J&K, Bihar, Uttarakhand), limited
bank branches (only 46,000 out of 600,000 villages).
Account Activity: 20% of 51 crore accounts inactive as of December 2023.
Account Duplication: Multiple accounts possible due to absence of centralized database.
To resolve issues associated with PMJDY, deploy Business Correspondents for branchless banking while
expanding rural ATM and PoS networks. Implement real-time digital monitoring to track progress and
address gaps promptly.
1.2.3. Pradhan Mantri Mudra Yojana (PMMY)
Context
The limit of Mudra loans under the PMMY has been enhanced from current Rs. 10 lakhs to Rs. 20 lakhs.
Quick facts
Purpose: PMMY is set up for providing MUDRA loans to the non-corporate, non-farming small &
micro enterprises.
Objectives
PMMY scheme aims to provide collateral free access to credit in a seamless manner to micro
enterprises in the country.
To fund the unfunded by bringing MSMEs to the formal financial system and extending affordable credit
to them.
PMMY aims to provide financial inclusiveness and support to the marginalized and hitherto
socio-economically neglected classes.
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8468022022 www.visionias.in
Salient Features
Background: Launched in 2015
MUDRA: Micro Units Development and Refinance Agency Ltd (MUDRA) is a refinance agency and not a
direct lending institution.
It provides refinance support to its intermediaries viz. Banks, Micro Finance Institutions (MFIs) and
NBFCs.
Sectors eligible for loan: MUDRA Loan Categories
Manufacturing
Lowest Priority Highest Priority
Trading and services sectors
Activities allied to agriculture
Means for availing Mudra loans: Bank, Tarun Plus Tarun Kishor Shishu
NBFC, MFIs etc or through Udyamimitra
portal
Nature of Assistance Loans Loans Loans Loans up to
above 10 above 5 above 50,000
Term Loan
lakh and lakh and 50,000 and
Overdraft Limit up to 20 up to 10 up to 5 lakh
Working Capital lakh lakh
Composite Loan for Acquiring Capital
No Need for Collaterals: Credit Guarantee Fund for Micro Units (CGFMU) provide guarantee coverage
for these collateral free micro loans.
Interest rate is deregulated: However, Interest Subvention of 2% on prompt repayment of Shishu loans
extended under PMMY for a period of 12 months to all eligible borrowers.
Also, MUDRA extends a reduction of 25bps in its interest rates to MFIs / NBFCs, who are providing loans
to women entrepreneurs.
Mudra Card: It provides a facility of working capital arrangement in the form of an overdraft facility to
the borrower.
Mudra Mitra: It is a mobile phone application. It guides a loan seeker to approach a Banker in availing
MUDRA loan under PMMY.
1.2.4. Stand Up India Scheme
Context
The scheme saw a flat growth in loans sanctioned during the financial year 2023-24 from the
previous year.
Quick facts
Purpose: To promote entrepreneurship at grassroots level focusing on economic empowerment and
job creation.
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