Pradhan Mantri Mudra Yojana comes under which of the following?

Question

Pradhan Mantri Mudra Yojana comes under which of the following?

1. Ministry of Corporate Affairs

2. Ministry of Rural Development

3. Ministry of Finance

Select the correct answer from the code given below:

1. A. 1 and 2
2. B. Only 3 (Correct answer)
3. C. 2 and 3
4. D. Only 1

Correct Answer

Option B — Only 3

Detailed Solution & Explanation

The correct answer is Only 3.

Key Points

• The Pradhan Mantri Mudra Yojana (PMMY) comes under the Ministry of Finance, giving option (b).
• MUDRA — Micro Units Development and Refinance Agency — is a financial institution, so the scheme naturally falls within the Finance Ministry's Department of Financial Services, not Corporate Affairs or Rural Development.

Additional Information

• PMMY was launched on 8 April 2015 to provide collateral-free institutional credit up to a specified limit to non-corporate, non-farm micro and small enterprises.
• Loan categories under the scheme:
  • Shishu — up to ₹50,000
  • Kishore — ₹50,000 to ₹5 lakh
  • Tarun — ₹5 lakh to ₹10 lakh
  • Tarun Plus — ₹10 lakh to ₹20 lakh (introduced later for those who have repaid earlier Tarun loans)
• Loans are extended through banks, NBFCs, Micro Finance Institutions and Regional Rural Banks; MUDRA itself refinances these lenders rather than lending directly.
• Guarantees are provided through the Credit Guarantee Fund for Micro Units (CGFMU). A large majority of PMMY accounts belong to women borrowers.
• Related financial-inclusion schemes under the same ministry: Jan Dhan Yojana, Stand-Up India, PM SVANidhi, Atal Pension Yojana, PMJJBY and PMSBY.