Digital Financial Inclusion of Street Vendors through PM SVANidhi Scheme: A Descriptive Study towards the Vision of Viksit Bharat 2047

Abstract

Financial inclusion has emerged as one of the most important policy priorities for achieving inclusive and sustainable economic development in India. Street vendors constitute a considerable segment of the urban informal economy and contribute substantially to employment generation and local economic activity. However, due to irregular income patterns, lack of collateral, and limited financial awareness, street vendors have historically remained excluded from the formal banking system. In response to the economic challenges faced by street vendors during the COVID-19 pandemic, the Government of India launched the Pradhan Mantri Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) Scheme in June 2020. The scheme provides collateral-free working capital loans, interest subsidies, and digital transaction incentives to street vendors with the objective of enhancing financial inclusion and promoting digital transactions. The present study examines the progress, implementation, and effectiveness of the PM SVANidhi scheme in promoting financial inclusion and digital financial participation among street vendors in India. The study adopts a descriptive and analytical research design and is based entirely on secondary data collected from government reports, the PM SVANidhi portal, Ministry of Housing and Urban Affairs publications, RBI reports, and research articles. Statistical tools such as growth rate analysis, Compound Annual Growth Rate (CAGR), trend analysis, and comparative analysis have been used to evaluate the scheme’s performance. The findings of the study indicate that the PM SVANidhi scheme has substantially improved access to formal credit among street vendors and has encouraged the adoption of digital payment systems such as UPI and QR-code-based transactions. By 2025, more than one crore loans amounting to approximately ₹17,115 crore had been disbursed under the scheme, while millions of vendors became digitally active participants in the formal financial ecosystem. The study concludes that PM SVANidhi has emerged as a transformative policy initiative contributing to financial inclusion, digital empowerment, livelihood security, and the broader vision of Digital India, Atmanirbhar Bharat, and Viksit Bharat 2047.