An approval letter doing the rounds of social media, allegedly issued under the Pradhan Mantri MUDRA Yojana (PMMY), is asking for Rs 4,500 as verification and processing fees to grant a loan of ₹10,00,000 under the scheme.
Meanwhile, the government has clarified that the approval letter is fake.
"This approval letter is #FAKE. @FinMinIndia has not issued this letter," tweeted Press Information Bureau's (PIB) fact checking arm 'PIB Fact Check'.
What is MUDRA Yojna?
MUDRA, which stands for Micro Units Development & Refinance Agency Ltd., is a financial institution set up by Government of India for development and refinancing of micro units enterprises. It was announced by the Finance Minister while presenting the Union Budget for FY 2016. The purpose of MUDRA is to provide funding to the non-corporate small business sector through various Last Mile Financial Institutions like Banks, NBFCs and MFIs.
Read more about the scheme here: https://www.mudra.org.in/FAQ
