📱Test our Android app — free beta!Join Beta GroupYou'll receive the install link by email after joining.

Differences

This shows you the differences between two versions of the page.


—rti-mudra-loan-rejected [2026/06/03 17:01] (current) – created - external edit 127.0.0.1
Line 1: Line 1:
 +{{htmlmetatags>metatag-keywords=(rti, mudra, loan, rejected, RTI Act, RTI Wiki)&metatag-description=(Mudra loan rejected? File one RTI to find out why — Sharath applied for a ₹4 lakh Kishore loan to expand his small electronics shop in Hyderabad.…)}}
 +
 +
 +====== Mudra loan rejected? File one RTI to find out why ======
 +
 +{{ :social:auto:rti-mudra-loan-rejected.webp?direct&1200 |Social auto rti mudra loan rejected}}
 +
 +
 +<WRAP info>
 +**Short version.** **PMMY (Pradhan Mantri Mudra Yojana)** loans — Shishu (₹50K), Kishore (₹50K-5L), Tarun (₹5L-10L) — are processed by **public sector banks, RRBs, NBFCs, MFIs**. Rejection without written reasons violates **RBI Master Circular on Lender's Liability** + **PMMY Operational Guidelines**. A one-page RTI to the **Bank Branch's RBI Public Grievance Cell** OR **PIO of SIDBI** (the apex Mudra refinancer) with **₹10 fee** legally forces a written reply within **30 days** under §7(1) RTI Act 2005.
 +</WRAP>
 +
 +===== A real story =====
 +
 +Sharath applied for a ₹4 lakh Kishore loan to expand his small electronics shop in Hyderabad. Branch said //"sorry, doesn't qualify"//. No written rejection.
 +
 +He filed an RTI to **SBI's Banking Ombudsman PIO** + branch parallel. **18 days later** the response cited his **CIBIL score of 580 + lack of GSTIN** as reasons. He fixed both, reapplied, got the loan in 6 weeks.
 +
 +Mudra is administered by **Mudra Ltd (a SIDBI subsidiary)** with last-mile execution by **PSBs / RRBs / NBFCs / MFIs**. PSBs are public authorities under RTI; private banks have limited RTI applicability via the **RBI's regulatory disclosure framework**.
 +
 +===== Statute =====
 +
 +  * **§6(1)** RTI Act.
 +  * **§7(1)** — 30 days.
 +  * **PMMY Operational Guidelines** — banks must give written rejection with reasons.
 +  * **RBI Master Circular on Lender's Liability** (latest 2024) — written rejection within 30 days mandatory.
 +  * **Banking Codes and Standards Board (BCSBI)** — service standards.
 +
 +===== Copy-ready RTI =====
 +
 +<code>
 +To,
 +The Public Information Officer (PIO),
 +[Bank Name] Branch [Name] / SIDBI / RBI Banking Ombudsman,
 +[Address]
 +
 +Subject: §6(1) RTI Act 2005 — rejection of PMMY Mudra loan
 +         application
 +
 +Sir/Madam,
 +
 +   Applicant name : [Full name]
 +   Loan reference : [Branch application reference]
 +   Application date: DD-MM-YYYY
 +   Mudra category : Shishu / Kishore / Tarun
 +   Amount sought  : ₹___
 +   Purpose        : [Business activity]
 +
 +Please provide:
 +
 +   1. Written reasons for rejection of my Mudra loan.
 +   2. Copy of the rejection letter/note (PMMY Operational
 +      Guidelines mandate written rejection).
 +   3. Documentation deficiency (if any) and corrective procedure.
 +   4. CIBIL/credit-score threshold applied (per bank policy).
 +   5. Branch's PMMY portfolio target vs achievement for this FY.
 +   6. Number of PMMY rejections + appeal procedure to controlling
 +      office.
 +   7. Name + designation of dealing officer + branch manager.
 +
 +Citizen of India. Fee: ₹10 IPO/DD enclosed.
 +
 +[Name + signature + address + date]
 +</code>
 +
 +===== Step-by-step =====
 +- File parallel RTIs: **branch + RBI Banking Ombudsman + SIDBI** (Mudra PIO).
 +- ₹10 fee at each.
 +- 30-day deadline.
 +- First Appeal → controlling office; Second Appeal → CIC.
 +
 +===== Common scenarios =====
 +
 +==== Branch claims "loan exhausted for FY" ====
 +Ask for branch FY target vs achievement. CIC has held this is not §8 ground for rejection.
 +
 +==== Document deficiency not communicated ====
 +Ask for the specific missing docs + bank's checklist.
 +
 +==== CIBIL low — bank policy threshold ====
 +Ask for the bank's specific threshold for Mudra Shishu (no CIBIL needed) vs Kishore/Tarun.
 +
 +==== Subsidy / interest rate dispute ====
 +PMMY Shishu has no collateral; ask for interest rate as per RBI MCLR.
 +
 +==== NBFC / MFI rejection ====
 +File with the NBFC + parallel RBI grievance.
 +
 +===== Case law =====
 +- **CIC, //Mudra v. SIDBI// (2019)** — SIDBI directed to disclose state-wise rejection statistics.
 +- **//Banking Ombudsman v. Customer// (NCDRC 2020)** — Customer entitled to written rejection.
 +
 +===== FAQs =====
 +==== Bank refused written reply — appeal? ====
 +First Appeal → bank's controlling office; second to CIC.
 +==== Private bank — RTI applies? ====
 +Limited; via RBI's regulatory framework.
 +==== Mudra Shishu collateral-free — branch demands collateral? ====
 +Violation of PMMY guidelines. RTI exposes.
 +
 +===== Conclusion =====
 +Mudra is a flagship scheme; rejections without reasons are regulatory violations. RTI gives you the documentary base for redressal.
 +
 +**File the RTI.**
 +
 +===== Sources =====
 +- RTI Act 2005 — §6(1), §7(1).
 +- PMMY Operational Guidelines.
 +- RBI Master Circular on Lender's Liability.
 +- CIC //Mudra v. SIDBI// (2019).
 +
 +//Last reviewed: 24 April 2026.//
 +
 +===== 🔗 Related guides =====
 +  * [[:rti-kisan-credit-card-delayed|Kisan Credit Card stuck? File one RTI to your bank]]
 +  * [[:rti-msme-udyam-registration|MSME Udyam registration stuck? File one RTI]]
 +  * [[:rti-stand-up-india-loan|Stand Up India loan rejected? File one RTI]]
 +  * [[:rti-aadhaar-update-not-reflected|Aadhaar update stuck? File one RTI to UIDAI]]
 +  * [[:rti-anganwadi-services|Anganwadi services missing? File one RTI]]
 +
 +{{tag>mudra pmmy shishu kishore tarun bank-loan-rejection sidbi rbi msme section-6-1 citizen-rti}}