On September 13, 2023, the Reserve Bank of India (RBI) issued circular RBI/2023-24/61, bearing reference FIDD.CO.MSME.BC.No.10/06.02.031/2023-24. This circular addresses all scheduled commercial banks, primary (urban) co-operative banks, state co-operative banks, district central co-operative banks, and non-banking financial companies (excluding housing finance companies). The circular pertains to the ‘PM Vishwakarma Scheme’ introduced by the Government of India (GoI).
PM Vishwakarma Scheme: The circular highlights the introduction of the ‘PM Vishwakarma Scheme’ by the Government of India. The primary objective of this scheme is to provide support to artisans and craftspeople across the country. The support aims to facilitate their progress up the value chain within their respective trades.
Credit Support: One of the significant components of the ‘PM Vishwakarma Scheme’ is the provision of credit support to eligible beneficiaries. This credit comes with a concessional interest rate, making it more accessible for artisans and craftspeople to avail financial assistance.
Interest Subvention: The circular emphasizes that the Government of India will extend interest subvention support as part of the ‘PM Vishwakarma Scheme.’ This means that a portion of the interest on the credit extended to beneficiaries will be subsidized by the government, reducing the overall cost of borrowing for artisans and craftspeople.
Guidelines: To implement the ‘PM Vishwakarma Scheme’ effectively, eligible lending institutions are directed to refer to the guidelines provided by the Ministry of Micro, Small and Medium Enterprises (MSME). These guidelines are crucial for understanding the scheme’s intricacies and for taking appropriate actions in line with its objectives.
Conclusion: The RBI circular dated September 13, 2023, brings attention to the ‘PM Vishwakarma Scheme,’ a government initiative aimed at empowering artisans and craftspeople in India. It underscores the provision of credit support at concessional interest rates, coupled with interest subvention support by the Government of India. Eligible lending institutions, including banks and non-banking financial companies, are advised to refer to the Ministry of MSME’s guidelines to ensure the effective implementation of this scheme. The ‘PM Vishwakarma Scheme’ holds the potential to uplift artisans and craftspeople, thereby contributing to the growth of the country’s cultural and economic heritage.
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Reserve Bank of India
RBI/2023-24/61
FIDD.CO.MSME.BC.No.10/06.02.031/2023-24
September 13, 2023
The Chairman/ Managing Director/Chief Executive Officer
All Scheduled Commercial Banks
(including Small Finance Banks and Regional Rural Banks, excluding Payments Banks)
All Primary (Urban) Co-operative Banks/State Co-operative Banks
/ District Central Co-operative Banks
All Non-Banking Financial Companies (excluding housing finance companies)
Madam / Dear Sir,
PM Vishwakarma Scheme
Government of India (GoI) has introduced the ‘PM Vishwakarma Scheme’ which aims to provide support to artisans and craftspeople to enable them to move up the value chain in their respective trades. The Scheme envisages, among other measures, credit support to the beneficiaries at concessional interest rate, with interest subvention support by GoI.
2. In this regard, eligible lending institutions may refer to the Scheme guidelines issued by the Ministry of Micro, Small and Medium Enterprises, for appropriate action.
Yours faithfully,
(Nisha Nambiar)
Chief General Manager
