Mumbai, Jan 16 (KNN) The Reserve Bank of India (RBI) has cautioned the over the rise in Non-Performing Assets (NPAs) under the Pradhan Mantri Mudra Yojana, according to a report in Economics Times quoting its sources.

The Mudra Yojana is the flagship scheme launched by the government to support micro enterprises in the country.

According to media report quoting Finance Ministry sources, RBI has cautioned the ministry that the scheme might turn-out to be the next big source of NPAs, which have plagued the banking system.

The RBI has pointed that the bad loans under PMMY have risen to Rs 11,000 crore.

As per the annual report of PMMY, 2017-18, total disbursements under the scheme stood at Rs 2.46 trillion in FY 18.

Out of this, 40 per cent were disbursed to women entrepreneurs and 33 per cent to social categories. More than 4.81 crore micro borrowers have benefited through PMMY during the year FY2017-18.

The PMMY was launched on April 8, 2015. Under the scheme, banks are required to finance micro and small entrepreneurs for up to Rs 10 lakh. Loans can be granted under three  categories - up to Rs 50,000 under 'Shishu'; Rs 50,001-Rs 5 lakh under 'Kishore' and between Rs 5,00,001 and Rs 10 lakh under 'Tarun' category.