Pradhan Mantri Jan Dhan

Yojna(PMJDY)
MUDRA loan Yojna and
PM Kaushal Vikash Yojna
By –
RAKESH ROUT 18334
RAJAT CHANDRA 18059
VIVEK SHARMA 18062
MD NAUSHAD 18231
RUDRANJAN DUTTA 18071
 Let’s understand few terms
so that we could have better
understanding of this two
schemes of PMJDY
Micro-Finance: Microfinance, also called microcredit​, is a
type of banking service that is provided to unemployed or
low-income individuals or groups who otherwise have no
other access to financial services.

Financial Inclusion is a process of providing the financial

services and products to all, especially the weaker sections of the
society in a cost-effective manner.
This includes ensuring a bank account to all and also providing
various services like deposit facility, credit, payment, transfer of
funds, insurance, etc.
 INTRODUCTION TO MUDRA
Micro Small and Medium
Enterprises (MSME) contributes The major constraints of the country
around 8% to GDP. Micro enterprises include :
constitute an important pillar of • Access to Finance
Indian economy as they account for • Skill Development Gaps
more than 90% of total number of • Knowledge Gaps
enterprises, as also 90% of non- • Infrastructure Gaps
agriculture employment. Small • Policy Advocacy Needs
businesses are not in a position to play • Information Asymmetry
their role effectively due to various • Lack of growth orientation
constraints. Raising finance is one of • Lack of Market Development /
the biggest problems for this sector. Market Making
• Entry Level Technologies
A vast part of the non-corporate sector (SMEs)operates as
unregistered enterprises.

They do not maintain proper Books of Accounts and are not formally
covered under taxation areas.

Therefore, the banks find it difficult to lend to them. Majority of this

sector does not access outside sources of finance.

The objective of PMMY is to support the entrepreneurs of the

previously mentioned class via (MUDRA) Bank.
 ORIGINATION
In India, the Financial Inclusion started as a programme in 2005-06, when RBI in its
Annual Monetary Policy Statement, announced in April 2005, mentioned the need to
have Financial Inclusion as a programme.

As a result, GoI initiated a programme called ‘Swabhiman’ whereby villages with

2,000 or more population were required to have banking facility by the year 2012.

The real impetus on financial inclusion came in the year 2014, when the
Government started the Pradhan Mantri Jan Dhan Yojana [PMJDY] as per which,
all adult population is to have a bank account. The programme is a huge success and
resulted in opening 29 crore accounts with a credit balance of `64,922 cr.

In spite of all these, there is a felt need to expand the financial services in India
through new intermediaries and products, which would help in expanding the
financial inclusion across the country, providing credit facility and other related
products.
MUDRA and PMMY is one such initiative, started in 2015, which has
enabled millions of micro enterprises to access credit from various
banking and non-banking channels. During the last two years, the
programme has helped about 7.50 crore loan accounts to avail of
credit exceeding 3.17 lakh crore

Micro Units Development & Refinance Agency Ltd (MUDRA) has

been initially formed as a wholly owned subsidiary of Small
Industries Development bank of India (SIDBI) with 100% capital
being contributed by it. Presently, the authorized capital of MUDRA is
1000 crores and paid up capital is 750 crore, fully subscribed by
SIDBI.
MAJOR PRODUCT OFFERINGS
Under the scheme of PMMY, MUDRA Bank has rightly
classified the borrowers into three segments: the starters,
the mid-stage finance seekers and the next level growth
seekers. To address the three segments, MUDRA Bank has
launched three loan instruments :

Shishu: covers loans upto Rs 50,000/-

Kishor: covers loans above Rs 50,000/-and upto Rs 5 lakh
Tarun: covers loans above Rs 5 lakh and upto Rs 10 lakh
Rate of Interest Charged:
Shishu: The rate of interest charged under this scheme by the
banks is around 10% to 12%. And public sectors banks are
charging at lower rate.

Kishor: The rate of interest isfrom14%to 17% depends on bank

to bank.

Tarun: The rate of interest starts at 16%

It should be noted that at least 60% of the credit flows to Shishu

Category Units and the balance to Kishor and Tarun Categories
are ensured.
 The funding supports from MUDRA are of four types:

A. Micro Credit Schemes: Micro Credit Scheme is offered mainly through Micro
Finance Institutions (MFIs), which deliver the credit upto Rs.1 lakh, for various micro
enterprise activities. Although, the mode of delivery may be through groups like
SHGs/JLGs, the loans are given to the individuals for specific income generating micro
enterprise activity. The MFIs for availing financial support need to enroll with MUDRA
by complying to some of the requirements as notified by MUDRA, from time to time

B. Refinance Schemes for Banks: Different banks like Commercial Banks,

Regional Rural Banks and Scheduled Cooperative Banks are eligible to avail of
refinance support from MUDRA for financing micro enterprise activities. The refinance
is available for term loan and working capital loans, upto an amount of 10 lakh per
unit. The eligible banks, which have enrolled with MUDRA by complying with the
requirements as notified, can avail of refinance from MUDRA for the loan issued under
Shishu, Kishor and Tarun categories.
C. Women Enterprise Programmes: In order to encourage women
entrepreneurs the financing banks / MFIs may consider extending
additional facilities, including interest reduction on their loan. At
present, MUDRA extends a reduction of 25bps in its interest rates to
MFIs / NBFCs, who are providing loans to women entrepreneurs.

D. Securitization of Loan Portfolio: MUDRA also supports Banks /

NBFCs / MFIs for raising funds for financing micro enterprises by
participating in securitization of their loan assets against micro
enterprise portfolio, by providing second loss default guarantee, for
credit enhancement and also participating in investment of Pass
Through Certificate (PTCs) either as Senior or Junior investor.
 PROGRESS OF MUDRA BANK YOJANA

till

Among three categories, Shishu loans had the highest share in terms of number of accounts
and which was followed by Kishor and Tarun. The share of Kishor loans fell by 1.66% in FY
2016-17 compared to FY 2015-16. In contrast, the share of Shishu and Tarun loans went up
marginally in FY 2016-17, as compared to FY 2015-16.
 NUMBER OF ACCOUNTS SCHEME-WISE
DISTRIBUTION FOR FY 2016-17

TARUN
1%
KISHOR
7%

SHISHU
KISHOR
TARUN

SHISHU
92%

Among three categories, Shishu loans had the highest share in terms of number of
accounts and which was followed by Kishor and Tarun. The share of Kishor loans fell
by 1.66% in FY 2016-17 compared to FY 2015-16. In contrast, the share of Shishu and
Tarun loans went up marginally in FY 2016-17, as compared to FY 2015-16.
 HIGHLIGHTS OF BUDGET 2018 IN CONTEXT
• OF MUDRA
Budget 2018: FM Arun Jaitley raises
MUDRA lending target to Rs 3 lakh cr
for FY’19
• Mudra loan disbursals in 2015-16 stood at
Rs 1.37 lakh crore, 12 percent higher than
the budgeted target of Rs 1.22 lakh crore. In
2016-17, Rs 1.81 lakh crore loans were
• given out against ayear)leanding
For FY’18(Current target of Rs 1.8 lakhis 2.44 lakh crore and 2 lakh
target
crore.
crore target is already been met by 3rd quarter

• So in total : Rs 4.6 trillion (4.6 lakh crore) credit has been sanctioned
under the scheme so far to 10.38 crore beneficiaries.
• Of the total loan accounts, 76 per cent are of women and more than
50 per cent belong to SCs, STs and OBCs
PRADHAN MANTRI
KAUSHAL VIKAS
YOJNA
 WHAT IS PMKVY?
Pradhan Mantri Kaushal Vikas Yojana (PMKVY) is the flagship
scheme of the Ministry of Skill Development &
Entrepreneurship (MSDE). The objective of this Skill
Certification Scheme is to enable a large number of Indian
youth to take up industry-relevant skill training that will help
them in securing a better livelihood. Individuals with prior
learning experience or skills will also be assessed and certified
under Recognition of Prior Learning (RPL).
Key components under the PMKVY scheme
1. Short Term Training: This portion is based on providing skill
training and placement to the candidates who are 10th and 12th
pass outs and college drop outs who are under the age of 14-34 year
old.
2. Recognition of Prior Learning (RPL): This portion identifies those
candidates who have some prior experience in any job fields. They are
going too trained under this portion of the scheme.
3. Kaushal and Rozgar Mela: Placement holds a special part in the
PMKVY (Pradhan Mantri Kaushal Vikas Yojana) scheme. Since,
Placement is the special part in the Pradhan Mantri Kaushal Vikas
Yojana (PMKVY) Scheme. Therefore, it is mandate for the Training
Partner to conduct Rozgar Mela along with the complete media and
press coverage.
4. Placement guidelines: Placement holds a special place in the
PMKVY scheme therefore it is important for the training partner and
the training center to follow the placement guidelines.
5. Monitoring guidelines: Quality training is the key apart of the
PMKVY (Pradhan Mantri Kaushal Vikas Yojana) scheme. Therefore,
PMKVY monitoring team use various way to make sure that weather
training centers are providing quality training or not and for this they
use various ways like surprise visits etc.
6. Special Projects: This portion is about providing training to
the candidate by reaching out their own places for example, at
government bodies, cooperate or industrial bodies, etc in the
special job roles not listed under the NSQF(National Skill
Qualification Framework)
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 Objectives
• Encourage standardization in the certification process and initiate a process of creating a

registry of skills

• Enable and mobilize a large number of Indian youth to take up skill training and become

employable and earn their livelihood. Increase productivity of the existing workforce and

align the training and certification to the needs of the country.

• Provide Monetary Awards for Skill Certification to boost employability and productivity of

youth by incentivizing them for skill trainings

• Reward candidates undergoing skill training by authorized institutions at an average

monetary reward of Rs. 8,000 (Rupees EightThousand) per candidate.

• Benefit 24 lakh youth at an approximate total cost of Rs. 1,500 Crores.

Strategy and Approach
i. The Scheme will provide monetary incentives for successful completion of marketdriven skill training and
certification to approximately twenty four lakh youth in in a span of one year from the date of
implementation of the scheme.

ii. This Scheme shall be implemented through Public-Private and Public-Public partnerships.

iii. NSDC will be the implementing agency for this Scheme.

iv. All trainings and certification under Recognition of Prior Learning will be specifically oriented for
developing skills in specific growth sectors.

v. Assessment and training bodies for all purposes of the Scheme will be separate and no overlap of roles
will be allowed to maintain transparency and objectivity.

vi. The monetary reward will be wholly funded by the Ministry of Skill Development and Entrepreneurship,
Government of India and will be affected through bank transfer to the beneficiaries’ accounts. For
facilitating the smooth disbursement as prescribed under the scheme, the entire money along with the
additional implementation fund will be transferred to National Skill Development Fund for further
utilization by NSDC.
Qualification
• Full Qualification
In this scenario, a candidate enrolled under RPL is assessed as per the assessment
criteria of the QP-NOS of the selected job role. If the candidate clears competency
based assessment under the designated Job Role, candidate is awarded a “Full
Qualification” Certificate
• Partial Qualification
NOS Based Certification Under this scenario, a candidate enrolled under RPL is
assessed as per the same QP-NOS. The SSCs have to define the minimum assessment
criteria that the trainee has to attain for the QP-NOS in order to get NOS based
certificate.
 Key Features
1. Eligible Sectors, Job Roles and target allocation
Training will be done against standards (National Occupational Standards - NOS and
Qualification Packs - QPs for specific job roles) formulated by industry-driven bodies,
namely the Sector Skills Councils (SSCs). The job roles identified by SSCs for Level 1 to
Level 4 is aligned with NSQF and aim to target school/ college dropout.
2. Eligible Providers
NSDC training partners undergo due diligence before being registered with NSDC.
Government affiliated training centres and other training partners will be approved by
the SSCs on the basis of guidelines issued by NSDC
3.Training Content
While, the thrust would be on outcomes in terms of third party assessment/certification,
training providers to focus on improved curricula, better technology enabled pedagogy
and upgrading the capacity of instructors to enable the overall ecosystem for high quality
skill training in the country
4. Assessment and Certification
Third party assessments for skill training will be done based on national (and
often) global standards. Under PMKVY, trainees with prior experience or skills
and competencies will be assessed and they will also be given monetary rewards
for undergoing assessments.
5.Mobilisation of candidates
Awareness building & mobilization activities would be carried out with the
involvement of local State and district governments as well as involve Members of
Parliament in the activities to ensure greater outreach and ownership.
6.Mentoring support
A mentorship program will be created in order to support trainees who have
successfully completed the training program and are in the process of looking for
employment opportunities
7.Evaluation and Monitoring
Training Centres
• Training Centers are the one who provide training to the candidate.
Training Centers the only link between the government and the
franchise. Their main work is to provide quality training to the
candidate.
Training Partners
• Training Partners are the helping hand of the government whose
work is to connect the government and the franchise. And help the
franchise to understand the project, go through all the legal
documentations.
• List of Trainings Centers where training have been initiated
Training partners
Courses under PMKVY
Pradhan Mantri Kaushal Vikas Yojana (PMKVY) scheme is providing
419 job roles under 34 sectors.
 FIELDS

Domestic Worker SSC* Agriculture SSC

Indian Plumbing SSC Earthmoving & Apparel SSC Healthcare SSC
Infrastructure SSC*

Beauty and Wellness SSC Iron & Steel SSC Electronics SSC Automotive SSC

Furniture& Fitting* BFSI SSC IT-ITeS SSC Food Industry SSC

Leather SSC
Telecom SSC Capital Goods SSC Gems & Jewellery SSC Life Sciences SSC

Tourism and Hospitality Logistics SSC Handicrafts SSC Construction SSC

SSC
Rubber SSC Media & Entertainment Textiles & Handloom SSC Mining SSC
SSC
Retailers Association’s SSC Security SSC Sports' SSC*
Benefits for the students:
• Quality education without any course fee.
• Free of cost uniform and books
• Certificate of merit
• Accidental cover of Prime Minister Insurance scheme cost Rs60 per
students.
• Rs 1000 as the convince charge for the girl candidate.
• Hostel facility for the students from Jammu and Kashmir, Left Wing
Extremism, North East and People with disability.
• Post placement Support in the form of Rs 1450 if candidate got
placement inside the district then the support for male is 1 month and
for female is 2 months. If the placement is out of the district then for
male it will 2 months and for female it will be for 3 months.