The RBI has warned the government that the industry already being witness to huge NPAs may yet again see a surge in NPAs or non performing assets from the government's flagship scheme that aims at promoting micro businesses in the country called the Pradhan Mantri Mudra Yojana.

The apex authority regulating the banking industry has provided that he PMMY NPAs have surged to Rs. 11,000 crore. Disbursements under the scheme as per the annual report of 2017-18 stand at Rs. 2.46 trillion in FY18. Of this significant 40% has been disbursed to women entrepreneurs and the rest has been disbursed to the social category.

The scheme launched in 2015 provided loans of up to Rs. 10 lakh value under three categories: - up to Rs 50,000 under 'Shishu'; Rs 50,001-Rs 5 lakh under 'Kishore' and between Rs 5,00,001 and Rs 10 lakh under 'Tarun' category.

The alarm is ringing in at a time when the financial sector is reeling under severe crisis due to IL&FS default which on a most recent basis has affected IndusInd Bank.

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