Cabinet Clears Revamped PM SVANidhi Scheme, Extends Support To Street Vendors Till 2030

The Union Cabinet approved the restructuring and extension of the Prime Minister Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi) scheme till March 31, 2030, with a total outlay of Rs 7,332 crore, on Wednesday. 

PTI reported that Prime Minister Narendra Modi presided over the meeting where the decision was made, according to an official statement.

According to the statement, the loan ceiling for the first and second tranches has been increased from Rs 10,000 to Rs 15,000 and from Rs 20,000 to Rs 25,000, respectively, while the third tranche's limit is at Rs 50,000.

The statement reported that street vendors who paid back their second loan on schedule would be eligible for a RuPay credit card linked to UPI to cover unforeseen personal and company expenses. Additionally, merchants who choose to use digital payments for retail and wholesale transactions will receive incentives of up to Rs 1,600.

The revised program, which was previously in effect until December 31, 2024, intends to help 50 lakh new street vendors as well as 1.15 crore existing recipients, according to PTI.

The Ministry of Housing and Urban Affairs (MoHUA) and the Department of Financial Services (DFS) would share responsibility for the scheme's execution, the announcement said.

The DFS will make it easier to obtain credit cards and loans through banks and other financial institutions, while the HUA ministry will serve as the program's anchor. According to the announcement, the redesigned program offers larger loan amounts, RuPay credit cards connected to UPI, digital reward incentives, and expanded geographic coverage.

Additionally, it concentrates on enhancing street vendors' abilities through convergent marketing, digital skills, financial literacy, and entrepreneurship. Together with the FSSAI, street food vendors would receive standard cleanliness and food safety training.

According to the announcement, the government first introduced the PM SVANidhi Scheme on June 1, 2020, to aid street sellers who were subjected to previously unheard-of difficulties during the COVID-19 pandemic.

Since the program's beginning, however, it has shown to be more than just monetary assistance for street sellers; it has also provided them with a sense of identity and official acknowledgement for their economic contribution.

According to PTI, important milestones have already been reached by the PM SVANidhi scheme.  According to the report, more than 68 lakh street vendors have received more than 96 lakh loans totalling Rs 13,797 crore as of July 30.

A total of Rs 241 crore in cashback has been earned by over 47 lakh digitally active beneficiaries through more than 557 million digital transactions valued at Rs 6.09 lakh crore.