The Reserve Bank of India (RBI) has raised a red flag over spike in non—peforming assets (NPAs) under the government’s flagship scheme to support micro enterprises in the country — the Pradhan Mantri Mudra Yojana.
Finance Ministry sources said, the RBI has cautioned that the scheme might turn out to be the next big source of NPAs that have plagued the banking system. RBI said that bad loans under PMMY had risen to Rs. 11,000 crore. The caution comes at a time when the country’s financial system is reeling under severe stress due to IL&FS crisis.