Only 1 in 3 street vendors who got loans under PM scheme use UPI, shows BBMP data

Bengaluru: Although most Bengalureans use digital payments to buy essentials, data by the BBMP shows that of the 1.3 lakh street vendors who have received loans under the PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme, only about 42,000 are digitally active and use UPI payment methods. 

According to the scheme, only digitally active vendors receive cashback and subsidies on interest. The data showed that, in the BBMP jurisdiction, close to Rs 1.5 crore has been received in the form of cashback and Rs 1.6 crore in interest subsidy by the eligible street vendors. 

The street vendors, however, opined that the data did not reflect the ground reality. They alleged that the BBMP was providing a Letter of Recommendation (LoR) to people who were not involved in street vending. 

“To reach the target, the BBMP is approving loans to people not involved in a business. When they do not have a business, it is obvious that they cannot be digitally active and hence the number of digitally active vendors is low,” said Rangaswamy C E, president of the Karnataka Beedi Badi Vyaapari Sanghatanegala Okkuta (KBBVS). 

Yet another street vendor said that many of the vendors have linked their Savings Bank (SB) accounts to digital transactions since it is easier. However, this would mean that they would be losing out on benefits offered under the PM SVANidhi scheme. 

“We (vendors) have to run to the banks to get a QR code linked to our loan accounts while the payment gateways reach out to us voluntarily and offer a QR code for our SB accounts. Hence, many of them opt for it. However, they will not be eligible for the benefits unless they link the SB account to the loan account,” said Ramesh K, a street vendor from Vijayanagar. 

However, BBMP officials said that the low rate of adoption of digital payment methods was due to the poor response by the banks and they were trying to resolve the issues. 

“We understand that the vendors depend on daily income and cannot run to banks multiple times to get the QR codes. Banks are creating bottlenecks in the process and this has made it difficult for the vendors. We are following up with the banks every day,” a senior BBMP official said. He added that the banks are also delaying loan approvals and close to 50,000 loan applications are pending with the banks. 

“To reach the target the BBMP is approving loans to people not involved in a business. When they do not have a business it is obvious that they cannot be digitally active and hence the number of digitally active vendors is low," Rangaswamy C E, President KBBVS, said.

“We understand that the vendors depend on daily income and cannot run to banks multiple times to get the QR codes. Banks are creating bottlenecks in the process and this has made it difficult for the vendors. We are following up with the banks every day,” a senior BBMP official said.