Skip to main content

PM Vishwakarma Scheme

Government of India has introduced the ‘PM Vishwakarma Scheme’.

Who are Vishwakarmas?

The traditional artisans and craftspeople who work with their hands and tools are referred to as ‘Vishwakarmas’. They are engaged in occupations like Blacksmiths, Goldsmiths, Potters, Carpenters, Sculptors, etc.

What are the objectives of PM Vishwakarma Scheme?

PM Vishwakarma Scheme aims –

  • To improve the quality as well as the reach of products and services of Vishwakarmas and to ensure that the Vishwakarmas are integrated into the domestic and global value chains. 
  • To offer holistic end-to-end support to the Vishwakarmas to enable them to move up the value chain in their respective trades.
  • To provide the Vishwakarmas an easy access to collateral free credit and reduce the cost of credit by providing interest subvention.

What will be the term of the Scheme?

PM Vishwakarma Scheme will be initially implemented for 5 years up to 2027-28.

How will the Scheme be implemented?

PM Vishwakarma Scheme will be implemented as a Central Sector Scheme, fully funded by the Government of India, with an initial outlay of ₹13,000 crore.

The Scheme will be conjointly implemented by the following ministries of the Government of India –

  • Ministry of Micro, Small and Medium Enterprises (MoMSME)
  • Ministry of Skill Development and Entrepreneurship (MSDE)
  • Department of Financial Services (DFS), Ministry of Finance (MoF)

MoMSME will be the Nodal Ministry for the Scheme and Additional Secretary & Development Commissioner (MSME) in Ministry of MSME will be the focal point for all aspects of implementation and coordination.

A 3-tier implementation framework at the National, State and District levels, i.e. the National Steering Committee, State Monitoring Committee and District Implementation Committee, respectively, has been provided for implementation of PM Vishwakarma Scheme.

What are the benefits under the Scheme?

PM Vishwakarma is a holistic Scheme that envisages to provide end-to-end support to the artisans and craftspeople through the following components –

Recognition – PM Vishwakarma Certificate and ID Card

  • The artisans and craftspeople will receive PM Vishwakarma Certificate and PM Vishwakarma ID Card in digital as well as physical form. 
  • The certificate shall enable the applicant’s recognition as a Vishwakarma and shall make him / her eligible to avail all the benefits under the Scheme. 

Skill Upgradation

  • The skill upgradation will embed modern tools, design elements and integration with the sector value chain as its key components of domain skilling. 
  • Besides domain skills, skill upgradation will also cover aspects that will enable the Vishwakarma to access other features of the scheme, including usage of toolkits, marketing support, enterprise creation and expansion through credit and benefits of digital transactions. 
  • The skill upgradation consists of 3 components – 
    • Skill Assessment
    • Basic Training – about 40 hours, over 5-7 days
    • Advanced Training – 15 days / 120 hours or more
  • Each beneficiary will be eligible to receive a training stipend of ₹500/- per day while undergoing the training programmes.

Toolkit Incentive

  • A toolkit incentive of upto ₹15,000/- will be provided to the beneficiary after Skill Assessment at the start of Basic Training. 
  • The incentive will be disbursed to the beneficiaries through e-RUPI / e-vouchers which can be utilized at designated centres to procure improved toolkits.

Credit Support

  • Financial support will be provided to the targeted beneficiaries in the form of collateral free ‘Enterprise Development Loans’.
  • The total amount of loan assistance would be ₹3,00,000/- wherein, the beneficiaries can avail the first loan tranche upto ₹1,00,000/- and second loan tranche upto ₹2,00,000/-.
    • The beneficiaries will be eligible for first loan tranche on completion of Basic Training.
    • The second loan tranche will be available to beneficiaries who have availed the first tranche loan and maintained standard loan account and have adopted digital transactions in their business or have taken Advanced Training.
    • The beneficiary will be eligible for the second tranche loan when the first tranche loan is fully repaid. 
    • The second loan will not be granted before 6 months of the disbursement of first tranche loan.
  • The loan shall be repaid in monthly instalments.
  • The term of loan repayment is 18 months for first loan tranche and 30 months for second loan tranche.
  • Concessional rate of interest chargeable to beneficiaries for loan will be fixed rate of 5%. 
  • The interest subvention by the Government of India will be upto 8% and provided upfront to the banks. 
  • A beneficiary will be eligible to avail concessional interest for both first and second tranches of the loan.
  • No prepayment penalty will be charged from beneficiaries after 6 months of loan disbursement.
  • A Graded Guarantee Cover for all loans sanctioned by the Lending Institutions will be covered by the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), which will be operated on a portfolio basis. Maximum guarantee coverage will be 50% of the year portfolio for the first tranche of loan and 15% for the second tranche of loan.
  • Scheduled Commercial Banks, Regional Rural Banks, Small Finance Banks, Cooperative Banks, Non-Banking Finance Companies and Micro Finance Institutions, are eligible to lend under the Scheme.

Incentive for Digital Transactions

  • An amount of ₹1 per eligible digital transaction (upto maximum 100 eligible transactions monthly) will be credited to the beneficiary’s bank account.
  • The eligible transaction means a digital pay-out or receipt in the bank account of the beneficiary.

Marketing Support

  • The National Committee for Marketing (NCM) will provide marketing and branding support for the products of the beneficiaries. 
  • Marketing support in the form of quality certification, branding, advertising, publicity and other marketing activities would be extended to the beneficiaries to improve their linkage to value chain of MSMEs and established companies.

Who are the eligible Vishwakarmas under the Scheme?

  • An artisan or craftsperson working with hands and tools and engaged in one of the family-based traditional trades, in the unorganized or informal sector, on self-employment basis, shall be eligible for registration under PM Vishwakarma Scheme.
  • The minimum age of the beneficiary should be 18 years on the date of registration.
  • The beneficiary should not have availed loans under similar credit-based schemes of Central Government or State Government for self-employment / business development, e.g. PMEGP, PM SVANidhi, MUDRA, in the past 5 years. However, the beneficiaries of MUDRA and SVANidhi who have fully repaid their loan, will be eligible under PM Vishwakarma. This period of 5 years will be calculated from the date of sanction of the loan.
  • The registration and benefits under the Scheme shall be restricted to one member of the family (consisting of husband, wife and unmarried children).
  • A person in government service and his / her family members shall not be eligible under the Scheme.

Which trades are covered under the Scheme?

The following traditional trades will be initially covered under PM Vishwakarma Scheme for providing benefits to the artisans and craftspeople engaged in these trades –

  • Carpenter (Suthar / Badhai)
  • Boat Maker
  • Armourer
  • Blacksmith (Lohar)
  • Hammer and Tool Kit Maker
  • Locksmith
  • Sculptor (Moortikar, Stone Carver), Stone Breaker
  • Goldsmith (Sonar)
  • Potter (Kumhaar)
  • Cobbler (Charmakar) / Shoesmith / Footwear Artisan
  • Masons (Rajmistri)
  • Basket / Mat / Broom Maker / Coir Weaver
  • Doll & Toy Maker (Traditional)
  • Barber (Naai)
  • Garland Maker (Malakaar)
  • Washerman (Dhobi)
  • Tailor (Darzi)
  • Fishing Net Maker

What will be the helpline number for the Scheme?

A helpline number shall be setup at the central level to support the beneficiaries in availing various incentives under the Scheme. [Toll Free Number : 18002677777]


References

Reserve Bank of India. (2023, September 13). 'PM Vishwakarma Scheme'. Retrieved from https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12536&Mode=0


Follow at - Telegram   Instagram   LinkedIn   Twitter   Facebook

Labels:

Comments

Post a Comment

Popular Posts

Highlights of RBI Annual Report 2023-24 – Chapter 7 to 12

Reserve Bank of India (RBI) has published its annual report for the financial year 2023-24. In a series of articles, we will go through the highlights of the report. This is the fifth and last article in the series.  Chapter 7 – Public Debt Management Ways And Means Advances (WMA) limit for the Government of India (GoI) for H1:2023-24 (April to September 2023) was fixed at ₹1,50,000 crore and for H2:2023-24 (October 2023 to March 2024) was fixed at ₹50,000 crore. RBI issued an ultra-long security of 50-year tenor aggregating ₹30,000 crore to cater to the growing needs of long-term institutional players. Issuance of Sovereign Green Bonds (SGrBs) for an aggregate amount of ₹20,000 crore included maiden issuance of 30-year (₹10,000 crore) SGrB in addition to 5-year (₹5,000 crore) and 10-year (₹5,000 crore) SGrBs. A new 3-year benchmark security was introduced as part of government market borrowing programme during H1:2023-24.  The basket of products offered through the ‘Retail ...
Post a Comment
Read more

Lending against Gold and Silver collateral

Reserve Bank of India (RBI) has issued directions on lending against the collateral of gold and silver. To whom are the directions applicable? The directions are applicable to the following regulated entities (REs) – Commercial Banks (including Small Finance Banks, Local Area Banks and Regional Rural Banks, but excluding Payments Banks). Primary (Urban) Co-operative Banks (UCBs) & Rural Co-operative Banks (RCBs), i.e., State Co-operative Banks (StCBs) and Central Co-operative Banks (CCBs). Non-Banking Financial Companies (NBFCs), including Housing Finance Companies (HFCs). Which loans are covered under the directions? The directions shall apply to all loans offered by an RE for the purpose of consumption or income generation (including farm credit) where eligible gold or silver collateral is accepted as a collateral security. What is eligible collateral? Eligible collateral means the collateral of jewellery, ornaments or coins made of gold or silver. A lender shall not grant any ad...
Post a Comment
Read more

Prior approvals from or intimations / reporting to RBI by NBFC-BL

Non-Banking Financial Companies (NBFCs) are required to obtain prior approvals from Reserve Bank of India (RBI) or intimate / report to RBI various events. This article lists out some of such important events where prior approvals or intimations / reporting is required for Base Layer NBFCs (NBFC-BL). Events requiring prior approval from RBI  Master Direction – Reserve Bank of India (Non-Banking Financial Company – Scale Based Regulation) Directions, 2023 dated October 19, 2023 Para 30 – NBFCs shall prepare its balance sheet and profit and loss account as on March 31 every year. Whenever an NBFC intends to extend the date of its balance sheet as per provisions of the Companies Act, 2013, it shall take prior approval of RBI before approaching the Registrar of Companies for this purpose. Even in cases where RBI and the Registrar of Companies grant extension of time, the NBFC shall furnish to RBI a proforma balance sheet (unaudited) as on March 31 of the year and the statutory returns ...
Post a Comment
Read more

RBI’s Monetary Policy (June 06, 2025): In A Nutshell

The bi-monthly monetary policy of Reserve Bank of India (RBI) was announced on June 06, 2025. Here are some of the highlights of the monetary policy announcement. Rates   Change Rate Policy repo rate Reduced by 0.50% 5.50% Standing deposit facility (SDF) rate 5.25% Marginal standing facility (MSF) rate 5.75% Bank rate 5.75% Monetary policy stance Monetary policy stance was changed from ‘accommodative’ to ‘neutral’. Domestic Economy  The Indian economy presents a picture of strength, stability, and opportunity. The 5x3x3 matrix of fundamentals provides the necessary core strength to cushion the Indian economy against global spillovers and propel it to grow at a faster pace.  First, strength comes from the strong balance sheets of the 5 major sectors - corporates, banks, households, government, and the external sector.  Second, there is stability on all 3 fronts – price, financial, and political – providing policy and economic certainty.  Third, the Indian ec...
Post a Comment
Read more

What is KYC?

Be it opening a new bank account, applying for a new credit card, registering for new e-wallet, or any other account or facility involving financial matters, the application process is incomplete until KYC is done.  What is KYC? KYC or Know Your Customer is a process of customer identification and verification while opening an account or undertaking a financial transaction. Why is KYC process needed? To prevent money laundering To combat financing of terrorism What is verified under KYC? The banks / financial institutions collect the relevant documents from the customers to verify the following – Proof of identity Proof of address Which documents can be collected for KYC? As per RBI’s Master Direction - Know Your Customer (KYC) Direction, 2016 (Updated as on May 10, 2021), “Officially Valid Document” (OVD) means – Passport Driving licence Proof of possession of Aadhaar number Voter's Identity Card issued by the Election Commission of India Job card issued by NREGA duly signed by an...
Post a Comment
Read more