Bank Account Issue · 1 min read · 44 sec listen · Published 18 September 2026

PMEGP Loan OTS Cancelled? Your Legal Options

Bank took your PMEGP loan OTS money and cancelled it? Know all your options on CGTMSE claims, mis-sold insurance, ledger recast and RBI Ombudsman relief.

Authored by

Sudhir Rao

Advocate · Supreme Court of India

Legal review Reviewed for accuracy by Adv. Jyoti Rao how we review →

PMEGP Loan OTS Cancelled? Your Legal Options

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One of my clients recently had a case which I am explaining below and if you are stuck in such similar situation, here is what to do.

Note: Due to attorney-client privilege, I cannot disclose complete case details or identify the actual parties involved. However, I am sharing the essential facts and legal approach so that if you find yourself in a similar situation, you can understand the available solutions and legal remedies.

TL;DR: A PMEGP loan OTS that exists only on the phone has no legal force, so ₹80,000 taken against it can be challenged and must be accounted for. A bank cannot call a life insurance policy "mandatory

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About the author

Sudhir Rao

Advocate practising before the Hon'ble Supreme Court of India, the Hon'ble Delhi High Court, and India's tribunals. 5+ years across constitutional, civil, criminal-appellate, and tribunal matters. Member · SCBA · DHCBA · DBA.

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