Social scheme for vendors - Main Bhi Digital 3.0

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Helping street vendors through digital inclusion - a step forward - Main Bhi Digital 3.0

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Social scheme for vendors - Main Bhi Digital 3.0

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  • The story: The Ministry of Housing and Urban Affairs (MoHUA) and Ministry of Electronics & Information Technology (MeitY) launched the 'Main Bhi Digital 3.0' Campaign. It is under the PM SVANidhi (Prime Minister Street Vendor’s AtmaNirbhar Nidhi) Scheme, targeted at India's street vendors.
  • Details: This special campaign is for Digital Onboarding and Training (DOaT) for Street Vendors (SVs). It is aimed at digital onboarding of SVs who have already been provided loans under PM SVANidhi Scheme, and lending institutions (LIs) have been instructed to issue a durable QR Code & Unified Payments Interface (UPI) ID at the time of disbursement and train the beneficiaries in conduct of digital transactions. An Integrated IT Platform has been developed for implementation of this Scheme. SVs can apply for loans directly through PM SVANidhi Portal.
  • What is the PM SVANidhi Scheme: It was announced as a part of the Economic Stimulus-II under the Atmanirbhar Bharat Abhiyan, and is implemented since 1st 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, with a sanctioned budget of Rs. 700 crore. 
  • The goal: The scheme aims at benefitting over 50 lakh street vendors who had been vending on or before 24th March 2020, in urban areas including those from surrounding peri-urban/rural areas. It aims at promoting digital transactions through cash-back incentives up to an amount of Rs. 1,200 per annum. As of 31st January 2021, the PM SVANidhi scheme has disbursed loans to 13.82 Lakh beneficiaries amounting to Rs 1,363.88 crores.
  • Features: The vendors can avail a working capital loan of up to Rs. 10,000, which is repayable in monthly installments in the tenure of one year. On timely/early repayment of the loan, an interest subsidy of 7% per annum will be credited to the bank accounts of beneficiaries through Direct Benefit Transfer on a quarterly basis. There will be no penalty on early repayment of the loan. The vendors can avail the facility of the enhanced credit limit on timely/early repayment of the loan.
  • Challenges: Many banks are seeking applications on stamp papers worth between Rs.100 and Rs.500. There are instances of banks seeking PAN cards and even checking the CIBIL or Credit score of applicants or state authorities asking for voter ID cards, which many migrant vendors do not carry with them. The CIBIL score is an evaluation of one's credit history and determines their eligibility for a loan. Complaints of harassment by police and municipal officials are also routine.
  • EXAM QUESTIONS: (1) Explain the need to provide support to street vendors, via a centralised loan scheme. What can it achieve? (2) What are the ways the informal sector insecurities of the street vendors may be addressed? Suggest a plan. 
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                    PT's IAS Academy: Social scheme for vendors - Main Bhi Digital 3.0
                    Social scheme for vendors - Main Bhi Digital 3.0
                    Helping street vendors through digital inclusion - a step forward - Main Bhi Digital 3.0
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