Right implementation of Mudra scheme will curtail Ponzi schemes: Rajiv Pratap Rudy

Heaping praise over the structure and guidelines of Pradhan Mantri Mudra Yojana (PMMY), BJP's Lok Sabha member Rajiv Pratap Rudy on Wednesday outlined that a correct implementation of the scheme would ensure a halt to the various Ponzi schemes that pop-up in the country from time to time.

Speaking during a discussion on the Banning of Unregulated Deposit Schemes Bill, 2019, Rudy said, "What is happening in Mudra scheme? If the 19 Lakh Rupees fund allocated under Mudra scheme would have been rightly given to concerned applicants, no Ponzi schemes or chit scams would have been successful. We need to strengthen the banks. These banks should be told to follow the policy of the government."

"Banks commit to you. They speak in beautiful English. They talk about development but when it comes to the reality they have no intentions to give that money to us", he added.

Invoking the example of his parliamentary constituency of Saran, Bihar, Rudy raised questions over the ground implementation of the scheme and said, "I represent Saran and since the last one year, I myself, along with my party workers, get form of PM Mudra Yojana filled for eligible people of my constituency. Till date, there are 20,000 such applications which have been filled through me but remain unapproved."

Rudy also raised the issue of rural-bank branches allegedly not being people friendly and said, "This time 70,000 crore has been given to banks. I have also signed it and it has my approval. Banks in villages have very stringent infrastructure with chained narrow gates. People have to queue up for as much as six hours to withdraw their own money. Hence this Rs 70,000 is being given now for what reason. What is the reason for bringing a bill on Ponzi scheme? We don't know to whom they have given the Rs 13,000-Rs 14,000 crore."

Rudy also asserted that a righteous implementation of Government policies will put an end to Ponzi schemes and would benefit people greatly.

"Ponzi schemes are kind of a disease which targets the poor. In 2009-10, the deposits in post offices all over India was 9,000 crore but within a year it reduced by 1,000 crores. Hence people took out money even from post offices and invested in such Ponzi schemes. All schemes of the Government are good but Mudra is best. If Ponzi schemes have to be stopped, the benefit of such a scheme should be given to applicants," Rudy said in the lower house of Parliament.

"When we make policies we have to also see the challenges. The intention of the government and Prime Minister are so clear that if we rightly implement them people will be greatly benefited through them", he added.

Under PMMY collateral-free loans up to Rs 10 lakh are extended to small or micro business enterprises and to individuals to enable them to set up or expand their business activities.

Earlier this year, the Rajya Sabha was informed that under PMMY 15.59 crore loans have been sanctioned till January 25, 2019.

( With inputs from ANI )