Private sector bank executives fear that pressure from government officers may leave them with little choice. Given the small ticket size, banks, in any case, find it tough to operate the scheme While executives in the branch described it as routine communication, several bankers point to it to argue that their worst fears are coming true at a time when several state government officers are pushing for rapid disbursement of loans.
Although banks have been hesitant to disburse the loan for Rs 10,000 to street vendors. The ministry of finance, which monitors the fate of state-run banks. The chiefs have got them to benefit out loans. To nonsurprise, the public sector lenders have disbursed 92% of the loans so far with private banks being showing less urge. For example, HDFC Bank which is one of the largest lenders received a request for a loan with 18,200 applications but has only sanctioned 6,100 loans under the scheme.
Following the fashion others bank did similar practices like ICICI Bank received 10,400 applications but has only authorized just 882 cases worth Rs 88 lakh and paid Rs 58 lakh, even the Axis Bank has shelled out loans to 392 street traders from the 9,000-odd proposals, implying that the private lenders are taking a thorough examination before accepting requests for the loan. The bank executives from the private sector fear that the burden from the government officers may leave them with little or no choice. Given the small ticket size, banks, in any case, find it difficult to utilize the benefits of the scheme, nevertheless, it is indicated to move differently towards the end. Like the Mudra scheme, the national government shares the information exclusively on objectives and disbursals, reimbursement, and ruin figures to stay out of public vision