In 2025, PM SVANidhi was enhanced with UPI-linked credit cards for street vendors. Which Ministry oversees this?
- AOption (a)
Ministry of Finance
- BOption (b)
Ministry of Housing & Urban Affairs
- COption (c)
Ministry of Commerce & Industry
- DOption (d)
Ministry of MSME
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Correct answer
Ministry of Housing & Urban Affairs
Why this answer is correct
The correct answer is Ministry of Housing & Urban Affairs.
Key Points
- The PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme was launched on June 1, 2020 by the Ministry of Housing & Urban Affairs (MoHUA) to provide affordable working capital loans to street vendors.
- In 2025, the scheme was enhanced by linking UPI-enabled digital credit cards for street vendors, ensuring easier access to digital transactions and formal credit systems.
- The Ministry of Housing & Urban Affairs is responsible for urban development, including schemes aimed at poverty alleviation and urban livelihood enhancement, which is why it oversees PM SVANidhi.
- The scheme is aimed at helping street vendors, a crucial part of the informal urban economy, to recover from the economic distress caused by the pandemic and ensure sustainable livelihoods.
- The MoHUA works in collaboration with banks, digital payment platforms, and municipalities to implement the scheme efficiently.
Additional Information
- PM SVANidhi Scheme:
- The scheme was launched during the COVID-19 pandemic to support street vendors by providing collateral-free working capital loans of up to Rs. 10,000 in the first phase.
- It encourages digital payments and offers cashback incentives for vendors who adopt online transactions.
- As of 2025, the scheme includes UPI-linked credit cards, providing vendors with access to instant credit for their operational needs.
- Ministry of Housing & Urban Affairs (MoHUA):
- The MoHUA is responsible for urban housing, infrastructure, and poverty alleviation programs.
- The Ministry oversees flagship schemes like Smart Cities Mission, AMRUT, and PMAY-Urban.
- It plays a pivotal role in urban development and providing livelihood support to vulnerable sections of society.
- UPI-Linked Credit Cards:
- UPI-linked credit cards enable real-time digital payments and provide access to formal credit systems for small-scale vendors.
- This initiative promotes financial inclusion by bringing unbanked vendors into the formal economy.
- It also facilitates digital literacy and promotes transparency in financial transactions.
- Role of Street Vendors in Urban Economy:
- Street vendors contribute significantly to the urban informal sector, providing affordable goods and services to millions of people.
- They are among the most vulnerable groups, especially during economic disruptions like the COVID-19 pandemic.
- Supporting street vendors ensures economic resilience and boosts overall urban economic activity.
Important Points
- Other Ministries Mentioned in the Options:
- Ministry of Finance: While it oversees financial policies and banking regulations, it does not directly handle urban livelihood schemes like PM SVANidhi.
- Ministry of Commerce & Industry: This Ministry focuses on trade and industry development, not urban housing or livelihood programs.
- Ministry of MSME: Though this Ministry supports micro, small, and medium enterprises, street vendors fall under the urban informal economy, managed by MoHUA.