Context:
Report “Phenomenal impact of PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi)scheme on street vendors: An analysis by SBI” was released recently.
About PM SVANidhi scheme:
- It is a micro-credit scheme for urban street vendors
- Aim – To provide collateral-free working capital loans up to ₹50,000.
- Objective – Integrating street vendors into the formal economic system and facilitating access to formal channels of credit
- Type – Central Sector Scheme
- Launched by – Ministry of Housing and Urban Affairs
- Implementation agency – Small Industries Development Bank of India (SIDBI)
- Key features –
- Regular repayments are incentivized with a 7% interest subsidy
- Digital transactions are rewarded with cashback up to ₹1,200 per year.
Key Findings:
- Impact on women: 43% of the total beneficiaries are women which indicates the empowerment of entrepreneurial capabilities of urban females.
- Breaking down community barriers: Almost 75% of beneficiaries come from the non-general category (OBCs- 44%, SCs/STs-22%) whereas 65% are in the age group of 26-45.
- Popularity of Scheme: The persistency ratio (2nd loan/1st loan repaid) is increasing indicating the need and popularity of Scheme.
- Digital transactions: It has increased the acceptability of digital transactions.
- Consumer Behaviour: The average debit card spending of PM SVANidhi account holders increased by 50% after loan instalments, marking a significant change in their financial behaviour.
Source: News on Air
Previous Year Question
With reference to Pradhan Mantri Kaushal Vikas Yojana, consider the following statements:
1. It is the flagship scheme of the Ministry of Labour and Employment.
2. It, among other things will also impart training in soft skills, entrepreneurship, financial and digital literacy.
3. It aims to align the competencies of the unregulated workforce of the country to the National Skill Qualification Framework.
Which of the statements given above is/are correct?
[UPSC Civil Services Exam – 2018 Prelims]
(a) 1 and 3 only
(b) 2 only
(c) 2 and 3 only
(d) 1, 2, and 3
Answer: (c)
Explanation:
It is the flagship scheme of the Ministry of Skill Development & Entrepreneurship (MSDE). Hence, statement 1 is not correct.
