PMMY is a scheme launched by the Union Government on April 8, 2015 for providing loans upto Rs. 10 lakh to the non-corporate, non-farm small/micro enterprises. These loans are classified as MUDRA loans under PMMY. PMMY was announced through Union Budget 2015- 16 (FY16) which proposed to create MUDRA bank with a corpus of Rs. 20,000 crore made available from the shortfalls of priority sector lending, to refinance Micro- Finance Institutions through Pradhan Mantri Mudra Yojana. Further, budget supported a credit guarantee corpus of Rs.3,000 crore for guaranteeing loans being provided to the micro enterprises.

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THE REPORT CARD OF KERALA STATE UNDER PRADHAN
MANTRI MUDRA YOJANA SCHEME
VARUN KESAVAN, RESEARCH SCHOLAR, E – MAIL ID – varunkesavan@yahoo.com
INTRODUCTION
PMMY is a scheme launched by the Union Government on April 8, 2015 for
providing loans upto Rs. 10 lakh to the non-corporate, non-farm small/micro
enterprises. These loans are classified as MUDRA loans under PMMY.
PMMY was announced through Union Budget 2015- 16 (FY16) which
proposed to create MUDRA bank with a corpus of Rs. 20,000 crore made
available from the shortfalls of priority sector lending, to refinance Micro-
Finance Institutions through Pradhan Mantri Mudra Yojana. Further, budget
supported a credit guarantee corpus of Rs.3,000 crore for guaranteeing
loans being provided to the micro enterprises.

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MUDRA (Micro Units Development & Refinance Agency)
MUDRA has been initially formed as a wholly owned subsidiary of Small
Industries Development bank of India (SIDBI) with 100% capital being
contributed by it.
MUDRA has been formed with primary objective of developing the micro
enterprise sector in the country by extending various support including
financial support in the form of refinance, so as to achieve the
goal of “funding the unfunded”.
AIM OF MUDRA
The biggest bottleneck to the growth of entrepreneurship in the Non –
Corporate Small Business Sector (NCSBS) is lack of financial support to this
sector. Majority of this sector does not have access to formal sources of finance.
GoI is setting up MUDRA Bank through a statutory enactment for catering to
the needs of the NCSBS segment or the informal sector for bringing them in the
mainstream.

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TARGET BENEFICIARIES
The purpose of PMMY is to provide funding to the non-corporate small business
sector. Non- Corporate Small Business Segment (NCSBS) consists of millions
of proprietorship/ partnership firms running as small manufacturing units,
service sector units, shopkeepers, fruits/ vegetable vendors, truck operators,
food-service units, repair shops, machine operators, small industries, artisans,
food processors and others, in rural and urban areas. One of the biggest hurdles
to the growth of entrepreneurship in the Non-Corporate Small Business Sector
(NCSBS) is lack of financial support to this sector and a vast majority belonging
to this sector do not have access to formal sources of finance. According to the
NSSO Survey of 2013, there are 5.77 crore small business units, mostly
proprietorship, which run small manufacturing, trading or service activities.
TYPES OF FINANCIAL AIDS
Under the aegis of Pradhan Mantri MUDRA Yojana, MUDRA has already
created the following products / schemes.
 Shishu : covering loans up-to 50,000/-
 Kishor : covering loans above 50,000/- and up-to 5 lakh
 Tarun : covering loans above 5 lakh and up-to 10 lakh

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The interventions have been named 'Shishu', 'Kishor' and 'Tarun' to signify the
stage of growth / development and funding needs of the beneficiary micro unit
/ entrepreneur and also provide a reference point for the next phase of
graduation / growth to look forward to. It would be ensured that at least 60% of
the credit flows to Shishu Category Units and the balance to Kishor and Tarun
Categories.
SEGREGATION OF SECTORS UNDER PMMY
To maximize coverage of beneficiaries and tailor products to meet requirements
of specific business activities, sector / activity focused schemes would be rolled
out. To begin with, based on higher concentration of businesses in certain
activities / sectors, schemes are proposed for:
 Land Transport Sector / Activity - Which will inter alia support units for
purchase of transport vehicles for goods and personal transport such as auto
rickshaw, small goods transport vehicle, 3 wheelers, e-rickshaw, passenger
cars, taxis, etc.
 Community, Social & Personal Service Activities - Such as saloons, beauty
parlours, gymnasium, boutiques, tailoring shops, dry cleaning, cycle and
motorcycle repair shop, DTP and Photocopying Facilities, Medicine Shops,
Courier Agents, etc.

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 Food Products Sector - Support would be available for undertaking activities
such as papad making, achaar making, jam / jelly making, agricultural produce
preservation at rural level, sweet shops, small service food stalls and day to day
catering / canteen services, cold chain vehicles, cold storages, ice making units,
ice cream making units, biscuit, bread and bun making, etc.
 Textile Products Sector / Activity - To provide support for undertaking
activities such as handloom, powerloom, chikan work, zari and zardozi work,
traditional embroidery and hand work, traditional dyeing and printing, apparel
design, knitting, cotton ginning, computerized embroidery, stitching and other
textile non garment products such as bags, vehicle accessories, furnishing
accessories, etc.

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ANALYSISOF THE PERFORMANCE OF PMMY DURING THE FY 2016-17
Agency-wise Achievement the target set for the year 2016-17, under PMMY
was at `1.80 lakh crore, which was initially distributed to the banks and MFIs,
who in turn were distributed further into State-wise and branch-wise targets.
The agency wise performance against their overall target for the year is as
under:
SOURCE – ANNUAL REPORT OF PMMY 2016 – 2017

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SOURCE – ANNUAL REPORT OF PMMY 2016 – 2017
SOURCE – ANNUAL REPORT OF PMMY 2016 – 2017

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The achievement data indicate a 31% growth in the overall performance of the
programme by all the institutions. While the growth in respect of Public Sector
Banks and MFIs/SFBs remained at 21%, the same increased significantly by
91% for Private Sector Banks. The growth of RRBs was at a mere 6%. Among
the Public Sector Banks, State Bank of India with `16,746 crore for 11.54 lakh
accounts topped the table. SBI along with its other associate banks (which have
since merged with SBI) have sanctioned an amount of `22,599 crore for about
13.56 lakh accounts and accounted for 12.52% of the total sanctions. SBI was
followed by Punjab National Bank and Canara Bank, with `6,228 crore and
`5,301 crore respectively. The private sector banks also performed very well
with a sanction of `39,042.60 crore during the year, recording 91% growth. The
Bandhan Bank, which converted itself to a universal bank from MFI, topped the
list with `14,762 crore, which is more than one third of the share of the private
sector banks. The other major contributors in the private sector banks category
are HDFC Bank with `5,523 crore, IndusInd Bank with
`5,456 crore and ICICI Bank with `5,168 crore.
During the year, the Micro Finance Institutions contributed significantly to
PMMY with `45,338.22 crore, extended to 214.21 lakh borrowers. Bharat
Financial Inclusion Ltd (formerly known as SKS Microfinance Ltd.) with
`11,733 crore and Janalakshmi Financial Services Ltd with `7,684 crore was the
top two among the MFIs. The Regional Rural Banks sanctioned `12,010 crore
under PMMY during the year and their share was only about 7%. Among these
banks, two banks viz. Pragathi Krishna Gramin Bank with `2,317 crore

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and Kerala Gramin Bank with `2,125 crore were the major contributors. Madhya
Bihar Gramin Bank sanctioned `809 crore, which was followed by Karnataka
Vikas Gramin Bank with `759 crore and Paschim Banga Gramin Bank with `403
crore. A new category of Banks viz. Small Finance Banks, emerged during the
year. Most of these SFBs were the erstwhile MFIs converted into SFBs. During
the year, five SFBs reported their performance under PMMY which amounted
to `10,319 crore, extending loans to 29.60 lakh borrowers. Almost all these
loans are of micro finance loans, which were continuation of the business model
carried forward from their previous entity.
THE ANALYSISAND PERFORMANCE OF KERALA STATE UNDER PMMY
SCHEME DURING THE FY 2015-16, 2016 – 2017 AND 2017 – 2018
SOURCE – PMMY REPORT

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SOURCE – PMMY REPORT
SOURCE – PMMY REPORT

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From the analysis of data, it can be concluded that, the overall performance of
Kerala state under various schemes of PMMY has been really growing at an
exorbitant rate. Similarly the data also pinpoints that, there has been
tremendous increase in the total number of sanctions and disbursements.
When compared with the financial year 2015 – 2016 there has been
escalation in the total no of transactions from 830411 in 2015 – 2016 to
982260 in 2016 – 2017. Similarly, the provisional data for the year 2017 –
2018 states that, the total no of transactions increased from 982260 in
2016 – 2017 to 1224747 in 2017 – 2018.
Similarly, when compared with the financial year 2015 – 2016 data it can be
inferred that, there has been escalation in the total no of transactions from
830411 to 982260 in 2016 – 2017. Similarly, the provisional data for the year
2017 – 2018 states that, the total no of transactions has increased from
982260 in 2016 – 2017 to 1224747 in 2017 – 2018.
When compared with the financial year 2015 – 2016 there has been
escalation in the total disbursement amount from Rs. 4727.38 crores in
2015 – 2016 to Rs. 6140.44 crores in 2016 – 2017. Similarly, the provisional
data for the year 2017 – 2018 states that, the total disbursement amount
increased from Rs. 6140.44 crores in 2016 – 2017 to Rs. 6322.05 crores in
2017 – 2018.

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CONCLUSION
Thus Pradhan Mantri Mudra Yojana (PMMY) continues to be a major initiative
of the Government providing credit to millions of unfunded micro units in the
country. The programme has benefited 7.42 crore loan accounts with a sanction
of nearly `3.17 lakh crore in the last two years. It has also resulted in benefiting
about 2.25 crore new loan accounts/ entrepreneurs, thereby providing
employment to a large number of people across the country.

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REFERENCES
 https://www.mudra.org.in/PMMYReport
 file:///C:/Users/cwpkd/Downloads/Annual_Report_Of_Mudra_2016-
17%20(1).pdf
 file:///C:/Users/cwpkd/Downloads/Highlights%20of%20PMMY%20perf
ormance%20during%20FY%202015-16.pdf
 http://vikaspedia.in/social-welfare/financial-inclusion/pradhan-mantri-
mudra-yojana
 http://www.arthapedia.in/index.php?title=Pradhan_Mantri_MUDRA_Yo
jana_(PMMY)
 http://www.gkbuddy.co.in/all-about-pmmy/