PM SVANidhi Scheme 2.0

News: The Union Cabinet approved the restructuring and extension of PM SVANidhi (“PM SVANidhi Scheme 2.0”).

About PM SVANidhi Scheme 2.0

• Full Name: Pradhan Mantri Street Vendor’s AtmaNirbhar Nidhi 0
• Extended version: This scheme is an extension and restructuring of the original PM SVANidhi scheme.
  • The original PM SVANidhi Scheme was launched on 1 June 2020 to support street vendors during the COVID-19
• Implementing agencies: Implementation of the scheme would be the joint responsibility of Ministry of Housing & Urban Affairs (MoHUA) and Department of Financial Services (DFS).
  • The DFS is responsible for facilitating access to loan/ credit cards through banks/financial institution and their ground level functionaries.
• Key features of scheme
  • Total outlay: The total outlay for the scheme is ₹7,332 crore.
  • Timeline: The lending period now runs till 31 March 2030.
  • Targeted areas: Its coverage to grow beyond statutory towns to census towns and peri-urban areas in a graded manner
• Benefits of scheme
  • Enhanced loan structure: The enhanced loan structure includes –
    • First tranche loans increased up to Rs 15,000 (from Rs 10,000)
    • Second tranche loans increased up to Rs. 25,000 (from Rs. 20,000)
    • Third tranche remains unchanged at Rs. 50,000.
  • UPI-linked RuPay Credit Card: It is provided to vendors who have repaid the 2nd tranche loan for quick access to emergency credit.
  • Digital incentives: The street vendors can avail cashback incentives up to Rs. 1,600 on making retail and wholesale transactions.
  • Capacity building and standards
    • Entrepreneurship, financial literacy, digital skills, and marketing through convergence.
    • Standard hygiene and food safety trainings for street food vendors with FSSAI.
• National recognition: The scheme was awarded the PM’s Award for Excellence in Public Administration (2023) for Innovation (Central Level) and Silver Award for Excellence in Government Process Re-engineering for Digital Transformation (2022).