• Former RBI Governor Raghuram Rajan has cautioned that the next crisis in India’s banking sector could come from loans given to the unorganised micro and small businesses, called MUDRA loans, and credit extended through the Kisan credit card.
  • MUDRA loans are offered under the Prime Minister Mudra Yojana or PMMY, launched in 2015 by the NDA government.
  • A total of Rs 6.37 lakh crore has been disbursed under the scheme by public and private sector banks, regional rural banks and micro-finance institutions till date, as per the data from the Micro Units Development and Refinance Agency (MUDRA) website.
  • In a note on bank non-performing assets (NPAs), prepared at the request of Murli Manohar Joshi, Chairman of the Parliament Estimates Committee