eCircular

Department: ABU & GSS

Sl.No.: 1138/2023 - 24
Circular No.: NBG/MEGSS/13/2023 - 24
Date: Wed 13 Mar 2024

The Chief General Manager

State Bank of India,
All Circles.

Madam/ Dear Sir,

PM VISHWAKARMA-SCHEME GUIDELINES
PM Vishwakarma is a Central Sector Scheme launched by Ministry of Micro, Small and
Medium Enterprises to provide holistic and end-to-end support to artisans and
craftspeople (Vishwakarma) through access to collateral free credit, skill training,
modern tools, incentive for digital transaction and market linkage support. RBI has
issued notification for the scheme vide letter no RBI/2023-24/61, FIDD.CO.MSME. BC.
NO. 10/06.02.031/2023-24 dated 13/09/2023.

2. At present 18 categories of different trades are covered under PM Vishwakarma

scheme, which are as under:

Carpenter (Suthar), Boat Maker, Armourer, Blacksmith (Lohar), Hammer and Tool Kit
Maker, Locksmith, Goldsmith (Sunar), Potter (Kumhaar), Sculptor (Moortikar,Stone
carver/Stonebreaker,Cobbler(Charmkar)/Shoesmith/Footwearartisan,Mason(Raajmistri)
,Basket maker/Basket weaver/Mat Maker/Coir weaver/Broom Maker, Doll and Toy
Maker(Traditional),Barber(Naai),GarlandMaker(Malakaar),Washerman(Dhobi),Tailor(Da
rzi) and Fishing Net maker.
The objectives of scheme are as under:
a) Recognition of Vishwakarmas: To enable the recognition of artisans and
craftspeople as Vishwakarma making them eligible to avail all the benefits under
the PM- VISHWAKARMA Scheme (By providing Vishwakarma Certificate and ID
Card).
b) Skill Upgradation: To provide skill upgradation to hone their skills and make
relevant and suitable training opportunities available to them.
c) Toolkit Incentives: To provide support for better and modern tools to enhance
their capability, productivity, and quality of products.
d) Credit Support: To provide the beneficiaries an easy access to collateral free
credit and reduce the cost of credit by providing interest subvention.

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 e) Incentives for Digital Transactions: To provide incentives for digital
transaction to encourage the digital empowerment of these Vishwakarmas.
f) Marketing Support: To provide a platform for brand promotion and market
linkages to help them access new opportunities for growth.

3. Under PM Vishwakarma, financial support will be provided to the targeted

beneficiaries in the form of collateral free ‘Enterprise Development Loans’. The total
quantum of loan assistance would be Rs. 3,00,000/-in two tranches. The details of
guidelines are attached as annexure- ‘A’.
4. Government of India through Ministry of MSME (MoMSME) is providing interest
subvention as under:
(i) Concessional rate of interest chargeable for loans from beneficiaries will be
fixed at 5% till the account remains Standard. The interest subvention by the
Government of India will be maximum to an extent of 8%. The applicable rate of
interest is EBLR+3.25% i.e 12.40% (EBLR 9.15 wef 15.02.2023) and interest
subvention is 7.40% to be claimed from Govt through Nodal Agency (Indian
bank) portal for Standard accounts.
(ii) A beneficiary shall be eligible to avail the interest subvention for both first and
second tranches of the loan.
(iii) A Credit Oversight Committee headed by the Secretary, DFS may revise the
interest subvention cap of 8% keeping in view the prevailing interest rates.
Further, the PM Vishwakarma loan will be covered by the Credit Guarantee Fund Trust
for Micro and Small Enterprises (CGTMSE) on yearly portfolio basis. CGTMSE fee will
be borne by Government of India.
5. For processing of PM Vishwakarma loan, e-GSS application in CBS is enabled with
Maker and checker credentials.
6. The detailed guidelines on the scheme are available on Government’s website
(https://pmvishwakarma.gov.in).
7.The procedure for credit flow functionality for Lenders received from Ministry of MSME
is attached as Annexure-C for use by the operating functionaries.
8.Please bring the contents of the Circular to the notice of all the operating units/
branches under your control for meticulous compliance of the instructions.

Your faithfully,

(Shantanu Pendsey)
Chief General Manager (ABU & GSS)

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 ANNEXURE-A

Product Features: PM-VISHWAKARMA Scheme

Parameters Features
1 Business Unit ABU & GSS
2 Scheme Name PM-Vishwakarma
3 Scheme Code 9247
4 Product Code Tranche I- 6401 4017
Tranche II- 6401 4018
5 Product Features
1 Target Group To offer holistic end-to-end support to the Vishwakarma, i.e.,
the artisans and craftspeople, to enable them to move up the
value chain in their respective trades. It will bring a
qualitative shift in the way the occupations are practiced by
artisans and craftspeople, and this will uplift their socio-
economic status as well as their quality of life.
2 Eligibility i). An artisan or craftsperson working with hands and tools
and engaged in one of the family-based traditional trades in
the unorganized sector on self-employment basis, shall be
eligible for registration under PM Vishwakarma.
ii). The minimum age of the beneficiary should be 18 years
on the date of registration.
iii). The beneficiary should be engaged in the trades
concerned on the date of registration and 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. This period of 5 years will be calculated
from the date of sanction of the loan. However, the
beneficiaries of Mudra and PM-SVANidhi who have repaid
their loan, will be eligible under PM Vishwakarma.
iv). The registration and benefits under the Scheme shall be
restricted to one member of the family. For availing benefits
under the Scheme, a ‘family’ is defined as consisting of the
husband, wife and unmarried children.
v) A person in government service and their family members

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 shall not be eligible under the Scheme.

3 Purpose To provide financial support to artisans and craftspeople

(Vishwakarmas). The loan will be in the form of Collateral
free Enterprise Development Loans.

4 Type of facilities Demand Loan

5 Quantum of Tranche Amount of Loan Tenure of
Finance Repayment
(In Months)
First Tranche Up to Rs.100,000/ 18 Months
Second Tranche Up to Rs.200,000/ 30 Months

6 Assessment of Through e-GSS application

Limit
7 Documents Beneficiaries to produce Aadhar, Mobile Number, Bank
Required Account details, Ration Card while registering as
Vishwakarma. If beneficiary has no Ration Card, they will be
required to produce Aadhar Cards of all family members.
Applications under the scheme should be downloaded from
PM Vishwakarma site.
8 Margin NIL

9 Rate of interest Rate of interest will be EBLR+3.25% (Present effective

Rate 12.40% aligned to present Mudra ROI), subject to
change from time to time.

Concessional Rate of Interest Chargeable from

beneficiaries is fixed at 5% for Standard accounts only.

Interest subvention to the extent of 8% (Maximum) will be

provided by Government of India through Nodal Bank (Indian
Bank) portal.
As and when any account terns NPA, interest subvention
shall cease to remain available for the period account has
remained under NPA category. During such period entire
rate of interest i.e 12.40% presently (EBLR+3.25%) shall be
calculated automatically in CBS and is required to be

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 recovered from the borrower at the time of upgradation of
account to standard category.
10 Security: Primary---Hypothecation of assets created out of Bank
finance.
Primary
No collateral security.
Collateral
11 Insurance Assets created out of Bank’s finance may be insured as per
Bank’s extant instructions.
12 Processing fees NIL
13 Repayment 1st Tranche-18 Months
2nd Tranche- 30 Months.
No Moratorium as repayment will commence immediately
from the succeeding month of disbursement. EMI date to be
kept as 10th of each month.
14 Tenor of Loan Tranche I- 18 Months

Tranche II—30 months

15 Documentation SME-1 and SME-2 to be obtained
17 Guarantee Cover Loan shall be covered under Special Scheme of the Credit
Guarantee Fund Trust for Micro and Small Enterprises
(CGTMSE).
18 Interest Concessional rate of interest chargeable for loans from
subvention beneficiaries will be fixed at 5%. The interest subvention by
the Government of India will be to an extent of maximum 8%.
19 PM Vishwakarma The artisans and craftspeople will receive PM Vishwakarma
Certificate and ID Certificate and PM Vishwakarma ID Card. A unique digital
Card number shall be created and reflected on the certificate and
the ID card. The certificate shall enable the applicant’s
recognition as a Vishwakarma and shall make them eligible
to avail all the benefits under the PM Vishwakarma Scheme.
The PM Vishwakarma Certificate and ID Card will be
provided digitally as well as in physical form to the
beneficiaries.

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 ANNEXURE-B
PM Vishwakarma-Scheme other Guidelines.
Product PM-Vishwakarma
a Documents required Beneficiaries to produce Aadhar, Mobile Number, Bank
Account details, Ration Card while registering as
Vishwakarma. If beneficiary has no Ration Card, they
will be required to produce Aadhar Cards of all family
members.
b Sanctioning Authority To be Processed/Sanctioned/Monitored in
RASMECC/RACC/SMEC as per Bank’s Delegation of
Financial Powers.
c Documentation As per Simplified SME documentation.
SME-1 and SME-2 to be obtained.
d Pre-payment penalty No pre- payment penalty shall be charged after 6 month
of loan disbursement.
e Disbursement of 1st The disbursal of credit under the Scheme will be linked
Tranche with attainment of specific milestones of training. The
beneficiaries will be eligible for first Loan Tranche on
completion of 5-7 days Basic Training provided by
Ministry of Skill Development & Entrepreneur (MSDE).
f Disbursement of 2nd The beneficiary will be eligible for the second tranche
Tranche loan when the first tranche loan is fully repaid. Further,
the second loan will not be granted before six months of
the disbursement of first tranche loan.
The second Loan Tranche will be available to skilled
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.
g CIC Report Credit information report will be required for those who
have credit history, for availing benefits under the credit
component, so as to exclude any defaulter from again
availing credit under the scheme. In case of beneficiary
not having a credit history, the CPCs shall not exclude
them from availing credit, and they shall also not insist
upon credit information Report.

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h Stipend Rs.500 per day during training period, to be provided by
the Government.
i CGTMSE Claim PM Vishwakarma loans will be covered by the Credit
Guarantee Fund Trust for Micro and Small Enterprises
(CGTMSE) on yearly portfolio basis. CGTMSE fee will
be borne by Govt. of India. Branches/CPCs to update
Vishwakarma portal from time to time to ensure
CGTMSE coverage is obtained in all eligible cases. The
details of the graded guaranteed cover is furnished by
way of a table at the end of Annexure-B.
j Incentives Incentive of Rs 1 per digital transaction (Maximum 100
transactions per month) will be provided to the
beneficiaries by the Government of India.
k Skill Development By Ministry of Skill Development & Entrepreneur
(MSDE)
l Process-Flow 1.Recognition- PM Vishwakarma Certificate and ID
Card will be provided to Vishwakarma in Physical or
Digital form in order to make them eligible to avail the
benefit under the PM Vishwakarma Scheme. A Unique
digital number shall be created for each Vishwakarma,
and it is reflected in Certificate/ID Card.
2.Skill Upgradation-There are three components as
under:
a. Skill verification -An assessment of existing Skill and
fulfilment of knowledge gap.
b. Basic Skilling -To improve skill level and enable
them to avail credit support (Requirement for 1 st
Tranche), Training will be provided for 40 hours, over 5-
7 days. Beneficiaries will be upskilled in their trade
through exposure to modern tools and practices. NSQF
(National Skill Qualification Framework) certification will
be provided to skilled Vishwakarma.
c. Advanced Skilling-15 Days/120 hours or more
training will be provided at designated Training Centres
for deeper understanding of latest technologies, design
elements and enabling value chain linkage with
identified anchor industry Partners. After advanced
skilling Vishwakarma will be eligible for 2nd Tranche loan
under the Scheme.
3.Toolkit Incentive- Rs.15000/ will be provided by Govt

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 after skill Verification to procure improved toolkits.
4.Credit support- Credit support is provided by
Bank/FIs under Enterprise Development Loan (1 st & 2nd
tranches).
5.Incentive for Digital Transactions- Incentive of Rs 1
per digital transaction (Maximum 100 transactions per
month) will be given to the beneficiaries in DBT mode
through APBS (Aadhar Payment Bridge System) by the
Govt.
6.Marketing Support-NCM (National Committee for
Marketing) will provide marketing and branding support
for the products. 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.

m Registration/Verification MoMSME in association with CSCs (Common Service

process Centres) shall enroll the beneficiary families. Further, an
Aadhaar based authentication and centralized PM
Vishwakarma portal/ PM Vishwakarma Mobile app will
enable the beneficiaries to get register as Vishwakarma.
There is three-tier Verification process
1. Verification at Gram Panchayat or ULB.
2. Vetting and recommendation by the District
Implementation Committee.
3. Final approval by Screening Committee.
n Double/Multiple During Pre -sanction survey, field officer to exercise due
financing diligence to avoid double financing. Sanctioning officer
to ensure ticking of checklist displayed in e-GSS
application at the time of sanction of loan.
o Documentary evidence Branches/CPCs to ensure creation of record and
documentary evidence after disbursement of loan under
PM Vishwakarma Scheme.
p Outsourcing/Deviation Branches/CPCs to ensure that there should not be
outsourcing of pre-sanction survey. However, in case of
deviation if any, the same should be suitably approved
by the Competent Authority.
q PSL categorization As per Govt/RBI notification, Govt. will issue Udyam
Assist Certificate, which will be at par with Udyam
Registration Certificate for purpose of availing Priority

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 Sector Lending (PSL) benefits considering it as Micro
Enterprises under MSME. Branch/CPCs to feed Udyam
Assist Number (UAN) in e-GSS app/CBS under PM
Vishwakarma Scheme.
r Activities/Trades Loans sanctions under the scheme should be restricted
currently to the trades mentioned in para-2 of the e-
Circular. However, list of trades may be
updated/modified by National Screening Committee with
approval of ministry of MSME.

CGTMSE: The graded guaranteed cover will be provided as under:

Tranche Default Coverage of Maximum coverage
default portfolio
I First loss (0 to 7.5%) 100%
Second loss (>7.5% to 20%) 80%
Third loss (>20% to 50%) 60%
Maximum guarantee 50% of the year portfolio.
coverage
II First loss (Up to 5 %) 100%
Second loss (>5% to 15%) 80%
Maximum guarantee 15% of the year portfolio.
coverage

PROCESS FLOW OF PM VISHWAKARMA LOAN THROUG e-GSS APP IN CBS

A) Opening of Loan Accounts under Vishwakarma Scheme through e-GSS.
B) Claim of interest subvention/Reconciliation of BGL accounts.

A) Opening of Loan Accounts under Vishwakarma Scheme through e-GSS:

1. Branch user to Login to CBS and click on the e-GSS application under CBS apps
to key-in details of the application downloaded from PMV Portal.
2. Screen as below will appear where branch user needs to select Vishwakarma
Scheme (Make sure he/she has logged in with Recommender Role).

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3.Enter Savings Account Number of the Customer and click on Verify.

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4.Proposal entry screen will be displayed where Some of mandatory fields need to be
entered as below (Some of the fields will be auto-fetched as shown below).

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5.Click Save and Click Next to proceed for Annexure-1 screen  data to be entered or
selected by the Recommender as below. If selected No, Proper reason to be given.

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6.After saving the Annexure-1 screen, click on next to proceed to Annexure-2 where
Assessment is to be done by the Recommender as below.

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7.After Saving the Annexure-2, Click on Fetch CIC report for Bureau Report.
(Recommender can’t submit until CIC report is fetched. Due to technical reasons, If CIC
report is not fetched then Bureau report should be checked by the Recommender
Manually).

8.After Clicking on Submit Proposal, the Application will move to Sanctioning official.

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 9.Sanctioning Official at Processing center should login under Sanction role and
Click on Sanction after answering 5 questions displayed on the below screen.

10.After Sanction, the Application will be available to CBS maker  where mandatory
fields should be fed to submit to CBS checker.
(Please note that CBS maker should create collateral manually in CBS after Account
Number is opened by CBS checker).

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11.CBS checker should click on all the tasks after accessing the application for creation
and disbursement of the Loan Account.

B. Claim of interest subvention/Reconciliation of BGL accounts

1. On the last day of the month, an automated entry is passed in CBS for all
standard loan accounts whereby branch BGL(4698114) is debited for the
amount equivalent to interest subvention amount to be received for the month
and the same is credited to Profit and Loss CGL of the branch.
2. As every Loan account under PM Vishwakarma Scheme is opened with flat
Interest rate of 5%, the remaining interest amount (Subvention amount:
presently calculated @ 7.4%) shall be claimed by the Bank at Corporate
Centre level from the Government of India through Nodal Bank portal (Indian
Bank). Interest subvention amount received from GOI shall be parked in BGL

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 4698113 - PM Vishwakarma int subvention receiving - Branch 08586 at
Madam Cama Road.
3. Branch BGL (4698114 - PM Vishwakarma int subvention intermediate) needs
to be reconciled by the Branches as and when IBTS entries are received from
CC/LHO upon receipt of interest subvention amount from the GOI/.

Process-Flow

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