What's Happening?
The Prime Minister Street Vendor’s Atma Nirbhar Nidhi (PM SVANidhi) scheme, initially launched in June 2020, has been restructured and extended by the Union Cabinet, chaired by Prime Minister Shri Narendra
Modi. The scheme, which was designed to support street vendors affected by the pandemic, will now continue until March 31, 2030, with a total outlay of ₹7,332 crore. The restructured scheme aims to benefit 1.15 crore beneficiaries, including 50 lakh new ones. Key features include increased loan amounts, the introduction of a UPI-linked RuPay Credit Card, and digital cashback incentives for retail and wholesale transactions. The scheme's coverage is expanding beyond statutory towns to include census towns and peri-urban areas.
Why It's Important?
The restructuring of the PM SVANidhi scheme is significant as it provides a formal recognition and financial support to street vendors, a crucial part of the urban informal economy. By extending the scheme, the government aims to foster inclusive economic growth and socio-economic upliftment of street vendors and their families. The scheme not only offers financial aid but also focuses on enhancing digital literacy and entrepreneurship skills among vendors. This initiative is expected to transform urban spaces into vibrant, self-sustaining ecosystems, promoting livelihoods and advancing financial inclusion.
What's Next?
The implementation of the restructured PM SVANidhi scheme will involve collaboration between the Ministry of Housing & Urban Affairs, the Department of Financial Services, state governments, banks, and Urban Local Bodies. These entities will work together to identify street vendors, facilitate loan processes, and link beneficiaries to welfare schemes. The scheme will also include capacity-building initiatives focusing on entrepreneurship, financial literacy, and digital skills. Additionally, periodic Lok Kalyan Melas will be conducted to ensure the benefits of various government schemes reach vendors and their families.
Beyond the Headlines
The PM SVANidhi scheme's restructuring highlights the government's commitment to supporting the informal sector, which often lacks access to formal credit and social security. By providing financial support and formal recognition, the scheme aims to empower street vendors, enhancing their contribution to the economy. The initiative also underscores the importance of digital adoption in the informal sector, promoting cashless transactions and financial inclusion. This approach could serve as a model for similar initiatives in other sectors of the informal economy.
