RBI raises red flags on Mudra bad loans
The Mudra loan scheme was launched to help the highly under-funded SMEs in 2015
Within a year of the launch of the scheme, the then RBI governor Raghuram Rajan had warned of asset quality troubles bubbling in the scheme
Mumbai: Reserve Bank deputy governor M.K. Jain on Tuesday warned bankers about the growing stress in Mudra loans, which has crossed more than ₹3.21 lakh crore system-wide, and asked them to monitor such loans closely as unsustainable credit growth in the sector can risk the system.