Many major decisions have been taken in the Union Cabinet meeting on Wednesday. Union Minister Prakash Javadekar has given information about the decisions of the cabinet by holding a press conference. Javadekar said that it has been decided by the government to provide 2 percent interest to the beneficiaries of the Shishu loan under the Pradhan Mantri Mudra Yojana (PMMY). In the Shishu category of Pradhan Mantri Mudra Yojana, loans up to Rs 50,000 are given to the beneficiaries without any guarantee.

Information and Broadcasting Minister Prakash Javadekar told in the press conference that the Union Cabinet has approved giving 2 percent interest subsidy to the loan holders of the infant loan category under the Pradhan Mantri Mudra Yojana. He informed that the eligible beneficiaries will get this interest subsidy for 12 months on the outstanding loan till 31 March 2020. Prime Minister Mudra Yojana was launched on 8 April 2015 by Prime Minister Narendra Modi. Under this scheme loans up to Rs 10 lakh are given to small and micro-enterprises. This government scheme is popularly known as Mudra Loan. These loans are given by commercial banks, regional rural banks, small-loan institutions (MFIs) and non-banking financial companies.

The cabinet has taken several decisions on Wednesday. These include giving cooperative banks under RBI supervision. The cabinet has decided to bring cooperative banks and multi-state cooperative banks under the supervision of the Reserve Bank. Javadekar said in the press conference, "This step will give depositors confidence of their money security. The government will soon bring an ordinance in this regard. There are 1,482 urban cooperative banks and 58 multi-state cooperative banks in the country with which 8.6 crore customers are connected."

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Now these banks will have to work under the supervision of RBI