Ensure smooth implementation of PM Vishwakarma scheme: FinMin to PSBs

The finance ministry on Friday urged public sector banks (PSBs) to be ready for the smooth and successful implementation of the PM Vishwakarma Scheme scheduled to be launched on September 17.

The meeting, presided over by the secretary department of financial services, was meant to review the progress under PM SVANidhi scheme and assess banking preparedness for the rollout of the PM Vishwakarma scheme.

The Union Cabinet on Wednesday approved the PM Vishwakarma scheme with an outlay of Rs 13,000 crore for five years. It aims to benefit about three million families of traditional artisans and craftspeople, including weavers, goldsmiths, blacksmiths, laundry workers, and barbers.

Under the scheme, the government will provide credit support of up to Rs 1 lakh for the first tranche and Rs 2 lakh for the second tranche at an interest rate of 5 per cent.

The meeting also assessed the progress of banks in terms of sanction and disbursement of loans to street vendors under the PM SVANidhi scheme.

A senior banking official said that the Prime Minister’s Office (PMO) and Department of financial services (DFS) are holding meetings with banks to discuss issues with the implementation of the PM SVANidhi scheme and enhance its coverage.

The official highlighted that street vendors do not have a permanent residence and they often migrate, making it difficult for banks to trace them.

The heads of the banks were instructed to ensure speedy disposal of applications and close monitoring of loan sanctioning under the scheme, the finance ministry said in a tweet.

As of July 31, a total of 5.14 million applications amounting to Rs 6,623 crore have been disbursed. Under the scheme, the rate of interest charged by the lending institutions is in accordance with the existing RBI guidelines. The Union government pays an interest subsidy of 7 per cent on a quarterly basis, conditional on timely repayment of EMIs.