Budget 2025: FinMin to review Mudra Yojana, financial inclusion schemes tomorrow

Mudra yojana facilitates loans up to Rs 10 lakh to income generating micro enterprises.

Ahead of the Union Budget, the finance ministry on June 25 called for a detailed review of various financial inclusion schemes, including Mudra Yojana, which boosts employment creation in micro and small entities.

All public sector banks have been called to the meeting to be chaired by Financial Services Secretary Vivek Joshi.

The June 25 meet will review the targets under the Mudra Yojana and Stand-up India scheme, a person aware of the development told Moneycontrol.

The Mudra Yojana facilitates loans up to Rs 10 lakh to income generating micro enterprises engaged in the non-farm sector in manufacturing, trading or service sectors including activities allied to agriculture such as poultry, dairy and beekeeping. The government has extended over 43 crore loans aggregating to Rs 22.5 lakh crore under the PM Mudra Yojana since its launch in 2015.

The Stand-Up India scheme on the other hand supports entrepreneurship among women and SC and ST communities.

The review of the schemes is significant as the Union Budget is expected to focus on welfare schemes amid the government's inclusive growth push which is one of the priorities under the vision for Amrit Kaal.

The meeting will also review the Pradhan Mantri Jan-Dhan Yojana (PMJDY) accounts, status of inoperative accounts under it and issuance of RuPay cards, he said.

The number of Jan Dhan accounts is over 51.11 crore and in 2023, around 20 percent of these accounts were inoperative. The Union Minister of State for Finance Bhagwat Karad in the Narendra Modi government’s second term in December 2023 had said in reply to a query in the Rajya Sabha.

“Out of approximately 51.11 crore PMJDY accounts, around 20 percent accounts are inoperative as on December 6, 2023,” he said.

The total number of RuPay debit cards issued stood at 34.71 crore as on December 6, 2023.

The meeting is also likely to review pending claims in schemes like Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana. Pension scheme for unorganised sector workers Atal Pension Yojana and Prime Minister Street Vendor's AtmaNirbhar Nidhi will also be reviewed at the meet.

The progress of PM Vishwakarma scheme, launched in 2023, to provide end-to-end support to artisans and craftspeople is also likely to be taken up at the meet, he added.