Page 46 - Banking Finance December 2023

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find it difficult to lend to them. Majority of this sector does strata that had remained unserved for a long tenor, thus
not access outside sources of finance. being an efficient vector for 'uniform credit at population
scale'!
Broad composition of Micro enterprise sector
Having successfully weathered the pandemic blunt in both
disbursal as also number of accounts, MUDRA now appears
destined for higher glories benefitting the social fabric of the
country through bringing financial freedom to fringe groups
of Women, Minorities, SCs, STs, OBCs as also fuelling new
age entrepreneurship across manufacturing/services/trade
Average ticket size of the loans have nearly doubled;
Rs 72,000 in FY23 from Rs 38,000 in FY16
Shishu is the mostly widely availed Mudra product
across all Social Segments except Mudra Card, where
number of accounts is evenly distributed with major
focus towards Kishore product
With regard to disbursements, highest disbursement is
Figure : Composition of 5.7 crore Own Account Enterprises in Shishu product in the hitherto fringe social segments
of SC, ST, OBC, Women etc. Disbursements to Minorities
are higher in Kishore Product than Tarun product
Entrepreneurs such as New Entrepreneurs and Mudra
Card owners have availed most disbursement under
Tarun product and least under Shishu product

Unfortunately, even after implementation of MUDRA there
is huge gap between demand and supply of credit in present
scenario. There could be millions of people those who are
Figure : Composition of 5.7 crore Own Account Enterprises
still looking for credit but since they belong to the informal
Source- www.mudra.org.in/AboutUs/Genesis economy they are not lucky. According to a report by
Avendus, only 15% of MSMEs out of the total 64 million have
Micro Finance is an economic development tool whose access to credit.
objective is to provide income generating opportunities to
the people at the bottom of the pyramid. It covers a range Being Formal
of services which include, in addition to the provision of
One of the major case studies of the formalisation is Goods
credit, many other credits plus services, financial literacy and
and Services Tax (GST). The one nation, one tax data has
other social support services. Not just in India, the informal
become an integral part of the economy. The number of GST
economy is a major concern for the whole world. The only
payers has also increased from 70 lakh in 2017 to 1.40 crore
good news is digitisation is helping India march forward
in 2022. While GST is helping the government with big
rapidly but a lot needs to be achieved.
revenues, new enterprises are also getting exposed to the
financial world. This is actually helping them to build their
Leap of Faith credit score.
In a brief span of 8 years, PMMY/ MUDRA has brought forth
a Leap of Faith inculcating robust credit dispensation among Along with the GST, the spread of digital, specifically in the
Banks while fostering superior credit culture among finance domain, has revamped the legacy infrastructures.
diversified credit seeker groups, mainly from the bottom This is making a big difference for people, who have

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