Mudra loans another crisis in the making: Raghuram Rajan
Former RBI Governor Raghuram Rajan has cautioned that the next banking crisis could come from loans given under the Mudra scheme. The scheme was launched in 2015 for providing loans of up to â¹10 lakh to non-corporate, non-farm small/micro enterprises. Rajan explained that credit targets are sometimes achieved by "abandoning appropriate due diligence", creating the environment for future bad loans.