PM SVANidhi Scheme Extended

• 09 Dec 2022

For Prelims: PM SVANidhi Scheme, SVANidhi Se Samriddhi, Atmanirbhar Bharat Abhiyan, Economic Stimulus-II

For Mains: Microfinance, its Significance and the Related Initiatives.

Why in News?

The Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) Scheme has been extended beyond March, 2022.

What are the Provisions for the Extended Scheme?

• Extension of lending period till December 2024.
• Introduction of 3^rd loan of up to ₹50,000 in addition to 1^st & 2^nd loans of ₹10,000 and ₹20,000 respectively.
• Extension of ‘SVANidhi Se Samriddhi’ component for all beneficiaries of PM SVANidhi scheme across the country.
  • ‘SVANidhi Se Samriddhi’ was launched in January 2021 to map the socio-economic profile of the PM SVANidhi beneficiaries and their families.

What is PM SVANidhi Scheme?

• About:
  • The scheme was announced as a part of the Economic Stimulus-II under the Atmanirbhar Bharat Abhiyan.
  • It has been implemented since 1^st June 2020, for providing affordable working capital loans to street vendors to resume their livelihoods that have been adversely affected due to Covid-19 lockdowns.
    • A total of 13,403 vending zones have been identified so far.
    • 42 lakh street vendors are to be provided benefits under PM SVANidhi Scheme by December, 2024.
• Funding:
  • It is a Central Sector Scheme i.e., fully funded by Ministry of Housing and Urban Affairs with the following objectives:
    • To facilitate working capital loan;
    • To incentivize regular repayment; and
    • To reward digital transactions
• Significance:
  • The scheme will open up new opportunities for street vendors to move up the economic ladder.
• Eligibility:
  • States/Union Territories (UTs):
    • The Scheme is available for beneficiaries belonging to only those States/UTs which have notified Rules and Scheme under Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014.
      • Beneficiaries from Meghalaya, which has its own State Street Vendors Act may, however, participate.
  • Street Vendors:
    • The Scheme is available to all street vendors engaged in vending in urban areas.
      • Earlier the Scheme was available to all street vendors engaged in vending on or before March 24, 2020.

UPSC Civil Services Examination, Previous Year Question (PYQ)

Q. Can the vicious cycle of gender inequality, poverty and malnutrition be broken through microfinancing of women SHGs? Explain with examples. (2021)

Source: PIB