In a distressing case of cyber fraud, a businessman from Mumbai's Malad area has been defrauded of lakhs of rupees. The scam, which involved the Pradhan Mantri MUDRA Yojana (PMMY), highlights the vulnerabilities in digital financial transactions. The businessman, who runs an imitation jewellery packaging business, sought a Rs 10 lakh loan to expand his operations. In June 2025, he applied for the loan through a mobile application under the PMMY, a government initiative designed to support small and micro enterprises.
Shortly after applying, he received a call from a person claiming to be Nitin Kumar, who purportedly represented the Prime Minister Mudra Yojana office in Mumbai. Nitin assured the businessman that his loan was approved and requested personal documents, even sending an approval letter via WhatsApp. However, the situation quickly deteriorated as Nitin began demanding money for processing fees and other charges.
Another individual, Ashwin Kumar, then contacted the businessman, claiming to be a State Bank employee. Ashwin, who said Nitin had shared the businessman's number, sent his ID card over WhatsApp to gain trust. Under various pretexts, Ashwin demanded urgent payments, leading the businessman to transfer Rs 9,53,177 into multiple bank accounts. To meet these demands, the businessman borrowed money from friends, who transferred an additional Rs 46,251 to the accused's accounts.
Fraudulent promises and financial losses
Despite repeated assurances, no loan amount was credited to the businessman's account. Eventually, calls to both Nitin and Ashwin went unanswered. In a final attempt to resolve the issue, the businessman contacted another individual whose account he had transferred money to. This man, identifying himself as Dayashankar Mishra from a finance company, was informed of the fraud. However, Dayashankar also lured the businessman with further loan promises and extracted an additional Rs 18,73,700 for "processing" and related charges, again without delivering any loan.
Realizing the extent of the deception, the victim approached the local police and the North Regional Cyber Cell, leading to the registration of an FIR. The accused, Nitin Kumar, Ashwin Kumar, and Dayashankar Mishra, have been booked under charges of cheating and relevant sections of the Information Technology Act. Police are now tracing the bank accounts where the money was deposited, and further investigation is underway.
This incident underscores the risks associated with digital financial transactions and the need for vigilance. The Pradhan Mantri MUDRA Yojana, while a commendable initiative, has unfortunately become a tool for fraudsters to exploit. The scheme, which aims to empower non-corporate, non-farm small and micro enterprises, has been instrumental in fostering financial inclusion.
What is Pradhan Mantri MUDRA Yojana
According to Union Finance Minister Nirmala Sitharaman, nearly 68 percent of the total PMMY loan accounts have been sanctioned to women, becoming a tool for empowerment and enabling them to contribute to national economic growth. The scheme's impact has been significant, with Rs.11.58 lakh crores worth of MUDRA loans sanctioned to various marginalized communities, including Scheduled Castes, Scheduled Tribes, and OBCs.
The implementation of the financial inclusion program in the country is based on three pillars, achieved through leveraging technology and adopting a multi-stakeholder collaborative approach. Loans cover term financing and working capital needs across manufacturing, trading, and service sectors, including activities allied to agriculture like poultry, dairy, and beekeeping.
Despite its successes, the scheme has faced challenges. The COVID-19 pandemic, for instance, impacted the targets for FY 2020-21. However, the scheme has continued to grow, with an 18% increase in overall performance in FY24, mainly due to the increased volume of disbursements by NBFCs, NBFC-MFIs, SFBs, and Private Sector Banks.
The Pradhan Mantri MUDRA Yojana, launched on April 8, 2015, has been a cornerstone of financial inclusion efforts in India. The scheme provides easy, collateral-free loans up to Rs 10 lakh for non-corporate and non-farm income-generating activities. To strengthen support for aspiring entrepreneurs, the Finance Minister announced an increase in the loan limit to Rs 20 lakh during the Union Budget 2024-25.
The newly announced loan category, Tarun Plus, is designed specifically for those who have previously availed and successfully repaid loans under the Tarun category, allowing them to access funding between Rs 10 lakh and Rs 20 lakh. This initiative aims to further empower entrepreneurs and unlock their full potential.
