What's Happening?
The Indian government has extended the PM SVANidhi Scheme, which provides financial support to street vendors, until March 31, 2030. The scheme, initially launched in June 2020, aims to integrate street vendors into
the formal financial system by offering collateral-free bank credit and access to digital payment platforms. The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the restructuring and extension of the scheme, with a total outlay of ₹7,332 crore. The restructured scheme is expected to benefit 1.15 crore beneficiaries, including 50 lakh new ones. Key features include increased loan amounts, UPI-linked RuPay Credit Cards, and digital cashback incentives.
Why It's Important?
The extension of the PM SVANidhi Scheme is significant for the economic empowerment of street vendors, who are a crucial part of the urban supply chain. By providing financial stability and formal recognition, the scheme promotes inclusive urban development and economic growth. It also advances financial inclusion and digital empowerment, contributing to the broader vision of a self-reliant India. The scheme's success in boosting the economy and promoting livelihoods has been nationally recognized, highlighting its impact on the socio-economic upliftment of street vendors and their families.
