PM Svanidhi Credit Card: The government made an important announcement in the last budget under the Pradhan Mantri Street Vendor Atmanirbhar Nidhi (PM Swanidhi) scheme. According to this, eligible street vendors will now be provided with a UPI-linked RuPay credit card with a limit of up to ₹30,000. This new facility aims to provide small vendors with instant credit in case of emergency business or personal needs. To promote digital transactions, vendors will also receive cashback of up to ₹1,600 on retail and wholesale purchases.
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Initiation and Objective of the Scheme
The PM Svanidhi scheme was launched during the COVID-19 pandemic, when the livelihoods of millions of street vendors were suddenly disrupted. Through this scheme, the government initiated the provision of loans to them on easy terms and without any guarantee. This scheme will remain in effect until March 31, 2030. Initially, only ₹10,000 was provided as the first installment, which was increased to ₹15,000 in August 2024. Furthermore, the second installment was also increased from ₹20,000 to ₹25,000, while the third installment will continue to provide a loan of ₹50,000.
Changes in August and Expanded Target
Following the restructuring by the government in August, the total outlay for the scheme was increased to ₹7,332 crore. The scheme now aims to benefit a total of 11.5 million vendors, including 5 million new beneficiaries. The scheme will be implemented jointly by the Ministry of Housing and Urban Affairs and the Department of Financial Services. The Department of Financial Services will be responsible for ensuring access to loans and credit cards through banks and financial institutions to vendors.
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Benefits of RuPay Credit Cards and Digital Cashback
The most prominent feature of the restructured scheme is the provision of a UPI-linked RuPay credit card, which will be available to beneficiaries who repay their second loan on time. This will not only help vendors manage their expenses instantly but also promote digital payments. To encourage digitally active vendors, the government is also offering a cashback of up to ₹1,600 on retail and wholesale transactions. Furthermore, the scheme is being expanded beyond major cities to include census towns and semi-urban areas.