Pradhan asks banks to increase credit under Mudra Scheme

Union Petroleum Minister Dharmendra Pradhan today urged banks to scale up disbursement of small loans under MUDRA scheme to the poor, youth and women entrepreneurs in neglected areas of Odisha.
While reviewing the progress of implementation of MUDRA scheme in the state, Pradhan lamented the dismal performance of public sector banks (PSBs), regional rural banks (RRBs) and private banks in disbursing small loans in comparison to micro-finance institutions (MFIs) and NBFCs.
Pradhan also set a target for banks to raise the flow of credit to poor entrepreneurs from the present 35 per cent to at least 45 per cent in 2016-17.

Small loans of up to Rs 2 lakh is being disbursed under MUDRA scheme.
In 2015-16, MUDRA loan disbursement was Rs 5,436 crore against the target of Rs 4,011 crore in the state.
Around 23.43 lakh beneficiaries have taken loans under schemes like Shishu, Kishor, Tarun in MUDRA Yojana during this period.

The target for the current fiscal was fixed at Rs 7,203 crore. Out of this, 40 per cent have been disbursed so far, the minister was informed.
He said the PM India web page is available in several
regional languages. So, the PSBs and RRBs should create their own Odia portals to spread awareness about MUDRA schemes.

The State Bank of India (SBI) - the leading bank in Odisha, should be a torch bearer in this field, he said.
Noting that more and more banking correspondents should be deployed in rural pockets and other areas to create awareness and sensitise rural folk about the MUDRA scheme, Pradhan said, "This will help expand financial inclusion in several parts of the state."
A total of 5,073 banking correspondents have been deployed by PSBs in the state as against the current requirement of 5,260.
The minister said Khurdha, Ganjam, Cuttack, Puri and Mayurbhanj were some of the leading districts in MUDRA loan disbursements. Khurdha district alone disbursed Rs 300 crore small loans under the scheme in 2015-16.

He said banks were asked to expand their small loan disbursement in tribal dominated pockets in Kalahandi and Kandhamal districts.
Representatives from all public sector banks, regional rural banks, private banks, NABARD and Joint-Secretary, Financial Services in the Ministry of Finance attended the review meeting held here today.