Mudra Yojana has not grown the way I wanted: Narendra Modi
Couple of weeks earlier, MUDRA Yojana was launched to regulate the borrower and the lender of the microfinance and to stabilize the microfinance scheme through inclusive participation and firm regulation. The main objective of the scheme of MUDRA is to financially support small scale entrepreneurs of the backward and low economic classes. However, PM, Narendrea Modi said that this yojana has not lifted the way he expected it to.
On All India Radio, in the show Mann Ki Baat, Prime Minister Narendra Modi said that the yojana has not picked up that speed at which he expected. However, he believes that the incorporation is good. With about Rs. 42000 crore spent, a total of 66 lakh people have been benefited. Besides, out of 66 lakhs people, 24 lakhs are women. Also, the majority of the people who have been benefited are among scheduled tribes, schedules castes and other backward section.
PMMY has been funding the poorer section of the society and thus truly focuses on empowering people. It offers boost to enterprises, empowerment and earning. The scheme motivates the enterprises, empowers people and offers opportunities for earnings thereby helping the small entrepreneurs.
The scheme is more inclined in helping small workers like laundrymen, barbers, newspaper vendors, milkmen and so on. He mentioned about a female, Mamta Sharma from Bhopal who received RS. 40000 from the MUDRA yojana. Because of heavy interest rates, she faced difficulty in running her business of making wallets. But now with the received amount, she has solved a lot of her problems.
It is really tough to avail finances from schedules banks as they followed rigid norms and have strict scrutiny. This doesn’t allow the entire nation to have enough finance for their businesses. Only about 4% people received SIDBI assistance. Rest of the people are forced to take loans from the money lenders. The PMMY under MUDRA bank is hence created to develop and re-finance micro units.
People living in rural areas don’t have any advantage over formal banking and hence they do not have access to loans, credits, insurance and several other financial instruments that might help them grow their business. Thus they always had to take loans from money lenders and pay high interest rates. Mudra Bank and PMMY changed the phase of hundreds of individuals and this has proven better than subsidy. Though this yojana is not going at the pace with what our PM has expected, it has definitely changed the fiscal health of many.