RBI Deputy Governor MK Jain has expressed concerns over growing non- performing assets (NPAs) in Mudra category.

Why the concern?

• Non-performing assets ratio or bad loans as a percentage of MUDRA loans were at 2.68% in 2018-19, up 16 basis points from 2.52% in the previous year. These loan NPAs were at 2.89% in 2016-17.
• Of the 182.60 million MUDRA loans sanctioned, 3.63 million accounts defaulted as on 31 March.

The PMMY Scheme was launched in April, 2015. The scheme's objective is to refinance collateral-free loans given by the lenders to small borrowers.

• The scheme, which has a corpus of Rs 20,000 crore, can lend between Rs 50,000 and Rs 10 lakh to small entrepreneurs.
• Banks and MFIs can draw refinance under the MUDRA Scheme after becoming member-lending institutions of MUDRA.
• Mudra Loans are available for non-agricultural activities upto Rs. 10 lakh and activities allied to agriculture such as Dairy, Poultry, Bee Keeping etc, are also covered.
• Mudra's unique features include a Mudra Card which permits access to Working Capital through ATMs and Card Machines.

There are three types of loans under PMMY:

1. Shishu (up to Rs.50,000).
2. Kishore (from Rs.50,001 to Rs.5 lakh).
3. Tarun (from Rs.500,001 to Rs.10,00,000).

Source

NABARD found that 52.5% of the agricultural households had an outstanding loan on the date of the survey, and thus were considered indebted.

While all classes of farmers had debt, the highest incidence of indebtedness came from those
owning more than two hectares of land. In that category, 60% of households are in debt.

The biggest reason for taking loans among agricultural households was capital expenditure for
agricultural purposes, with a quarter of all loans taken for this purpose. "

The BSA is a very good example of mutual cooperation between India and Japan for strategic objective of assisting each other in times of difficulty and for restoring international confidence. This facility will enable the agreed amount of Capital being available to India on tap for use. Also, with this arrangement in place, prospects of Indian companies would improve in tapping foreign capital as there would be greater confidence in stability of country's exchange rate. Availability of such swap line to tide over difficulties arising out of Balance of Payment (BOP) would deter speculative attacks on the domestic currency and greatly enhance the RBI's ability to manage exchange rate volatility.

Source "

The Administrative Tribunals Act of 1985 empowers the Central government to establish the State Administrative Tribunals (SATs) on specific request of the concerned state governments.

Statement 2 is incorrect. The chairman, and members of the SATs are appointed by the President after consultation with the Governor of the state concerned.