Restructuring of PM SVANidhi

Why in News?

Recently, the Union Cabinet, had approved restructuring and extension of PM SVANidhi loan scheme for street vendors, till March 31, 2030.

• PM SVANidhi – Pradhan Mantri Street Vendors Atmanirbar Nidhi.
• It is a Central sector scheme.
• Launched in – 1^st June 2020
• Nodal Ministry – The Ministry of Housing and Urban Affairs and Department of Financial Services (DFS).
• Vendor Support - It was initially launched to support street vendors who faced unprecedented hardships during the COVID-19 pandemic.
• Objectives – To formalize the street vendors and open up new opportunities for this sector to move up the economic ladder.
• To promote digital adoption, street vendors can avail cashback incentives of up to Rs.1,600 on retail and wholesale transactions.
• Target – 1.15 crore beneficiaries including 50 lakh new beneficiaries.
• Loan restructure – It enhanced loan amount across the first & second tranche, provision of UPI-linked RuPay Credit Card for beneficiaries who have repaid the second loan.
• 1^st tranche loans increased up to Rs.15,000 (from Rs.10,000)
• 2^nd tranche loans increased up to Rs.25,000 (from Rs.20,000),
• 3^rd tranche remains unchanged at Rs.50,000
• Digital Inclusion – Introduction of UPI-linked RUPAY Credit Card to provide immediate access of credit to the street vendors.
• It provides digital cashback incentives of up to Rs.1600 for retail & wholesale transactions.
• Coverage extension – It expanded beyond statutory towns to census towns, peri-urban areas in graded manner.
• Other features – It focuses on enhancing the capacity of street vendors by promoting entrepreneurship, financial literacy, digital skills, and marketing through convergence.
• It also includes standard hygiene and food safety training for street food vendors in collaboration with FSSAI.
• SVANidhi se Samriddhi – It is an initiative, launched on January 4, 2021, to connect beneficiaries’ families to eight Government of India socio-economic welfare schemes.
• To promoting holistic development through comprehensive access to these welfare scheme.
• The component will be further strengthened, through monthly Lok Kalyan Melas.

Lok Kalyan Mela is a public welfare event organized by government authorities to ensure the effective delivery of various government schemes and services directly to eligible citizens.

• Recognition – PM’s Award for Excellence in Public Administration (2023), Innovation (Central Level).
• Silver Award (2022), Government Process Re-engineering for Digital Transformation.
• Significance – It empowers street vendors, foster inclusive economic growth, socio-economic upliftment livelihoods, and transforming urban spaces into a vibrant, self-sustaining ecosystem.

Reference

PIB| PM SVANidhi