Stand Up India loan rejected? File one RTI
Short version. Stand Up India Scheme (DFS, MoFS) provides ₹10 lakh to ₹1 crore loans to SC/ST/Women entrepreneurs for setting up a greenfield enterprise (Manufacturing/Service/Trading). Each PSB branch must extend at least 1 SC/ST + 1 Women loan. SLA: 45 days disposal. If rejected without reasons, RTI to PIO of bank + SIDBI nodal + DFS with ₹10 fee legally forces a written reply within 30 days under §7(1) RTI Act 2005.
Real story
Lalita, an SC woman entrepreneur, applied for ₹15 lakh Stand Up India loan at PNB. “Doesn't qualify” — no written reasons.
RTI to PNB Circle Office + DFS. 24 days later PNB replied: rejection reason was lack of business plan + collateral; corrective procedure shared. Approved on resubmission with handholding from local DIC.
Statute
- Stand Up India Scheme Operational Guidelines (DFS 2016, revised 2024).
- RBI Master Circular on Lender's Liability (latest 2024).
- §6(1) + §7(1) RTI Act.
Copy-ready RTI
To, PIO, [Bank Branch / Circle Office] / SIDBI Stand Up India Cell /
DFS Stand Up India Section, [Address]
Subject: §6(1) RTI Act 2005 — Stand Up India loan rejection
Applicant name : [Name]
Caste/Gender : SC / ST / Woman
Loan reference : [Bank application reference]
Application date: DD-MM-YYYY
Amount sought : ₹___
Activity : [Manufacturing / Service / Trading]
Please provide:
1. Written reasons for rejection.
2. Branch's Stand Up India FY target vs achievement
(1 SC/ST + 1 Woman per branch obligation).
3. CIBIL/credit threshold + collateral norms applied.
4. DIC handholding referral status.
5. Margin money + interest subvention applicable.
6. Name + designation of dealing officer.
7. Procedure to escalate to Circle / Zonal Office.
Citizen of India. Fee: ₹10 IPO/DD enclosed.
[Name + signature + address + date]
Common scenarios
- Branch claims target not exhausted but rejects.
- Collateral demanded above scheme threshold.
- Business plan rejected — DIC referral missing.
- SC/ST proof dispute.
- Margin money deposit dispute.
Case law
- CIC Stand Up India v. DFS (2020) — DFS directed to disclose state-wise rejection statistics.
- Women Entrepreneur v. PSB (DRT 2022) — Held branches bound by scheme target.
FAQs
First-time entrepreneur required?
Yes — greenfield only.
Margin money — own contribution?
15% of project cost.
Subsidy / interest?
Bank base rate + max 3%; interest subvention via state schemes.
Conclusion
Stand Up India is a flagship inclusion scheme. Branch rejections without reasons violate scheme + RBI circulars. RTI cracks them.
Sources
- Stand Up India Operational Guidelines (DFS 2016/2024).
- RBI Master Circular on Lender's Liability.
- CIC Stand Up India v. DFS (2020).
Last reviewed: 24 April 2026.