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PM Vishwakarma Scheme: Credit Support for Artisans

Current · Source: Reserve Bank of India · RBI/2023-24/61 · issued 13 Sep 2023 · ~1 min read
Quick answerRBI notifies banks and NBFCs about the PM Vishwakarma Scheme, offering concessional credit with interest subvention to artisans and craftspeople. Lenders must follow scheme guidelines from the Ministry of MSME.
The rule, in the simplest words
How it plays out — a real example

A loan officer in Mumbai, working for a Scheduled Commercial Bank, is now able to offer a concessional loan with a lower interest rate to an artisan who makes traditional handicrafts, thanks to the PM Vishwakarma Scheme. The loan officer must ensure that the artisan meets the eligibility criteria and follows the scheme guidelines from the Ministry of MSME. By doing so, the loan officer is supporting the government's initiative to promote the growth of small businesses and artisans.

What changed

The Government of India launched the PM Vishwakarma Scheme to support artisans and craftspeople with credit at concessional rates, backed by interest subvention. RBI has directed all eligible lending institutions to refer to the scheme guidelines issued by the Ministry of MSME for implementation.

What it means for you

Banks and NBFCs can now offer cheaper loans to artisans, with the government covering part of the interest cost. This expands the priority sector lending base and requires lenders to align their processes with MSME ministry guidelines.

What you must do

Who it affects

All Scheduled Commercial Banks (including Small Finance Banks and RRBs, excluding Payments Banks), Primary (Urban) Co-operative Banks, State Co-operative Banks and District Central Co-operative Banks, All Non-Banking Financial Companies (excluding housing finance companies)

❓ Common questions

What is the PM Vishwakarma Scheme?

It is a Government of India scheme to support artisans and craftspeople with concessional credit and interest subvention, helping them move up the value chain.

Which institutions are eligible to lend under this scheme?

All Scheduled Commercial Banks (excluding Payments Banks), Primary Urban Co-operative Banks, State/District Central Co-operative Banks, and NBFCs (excluding HFCs) are eligible.

Where can I find detailed guidelines for implementation?

The scheme guidelines are issued by the Ministry of Micro, Small and Medium Enterprises. Lenders should refer to those for specific operational details.

📜 Read the original circular — full text as issued by RBI
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
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2023-24/61 · issued 13 Sep 2023. The plain-English explanation above is BankPulse’s own independent summary.
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Who does what — compliance checklist
💻 IT / Systems
  • Ensure systems are ready to track and disburse credit under the scheme to eligible beneficiaries.
📜 Compliance
  • Review the PM Vishwakarma Scheme guidelines from the Ministry of MSME for detailed operational instructions.
  • Train frontline staff on eligibility criteria and concessional interest rate structures for artisan loans.
  • Update internal lending policies to include interest subvention claims and reporting mechanisms.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template

Example: if you are a Compliance officer at a bank this circular applies to (All Scheduled Commercial Banks (including Small Finance Banks and RRBs, excluding Payments Banks), Primary (Urban) Co-operative Banks, State Co-operative Banks and District Central Co-operative Banks, All Non-Banking Financial Companies (excluding housing finance companies)), your first concrete step on “PM Vishwakarma Scheme: Credit Support for Artisans” is: “Review the PM Vishwakarma Scheme guidelines from the Ministry of MSME for detailed operational instructions.” (RBI issued this 13 Sep 2023).

  1. Circular: RBI/2023-24/61 -- PM Vishwakarma Scheme: Credit Support for Artisans
  2. Issued: 13 Sep 2023
  3. Action required: Review the PM Vishwakarma Scheme guidelines from the Ministry of MSME for detailed operational instructions.
  4. Action required: Train frontline staff on eligibility criteria and concessional interest rate structures for artisan loans.
  5. Action required: Update internal lending policies to include interest subvention claims and reporting mechanisms.
  6. Action required: Ensure systems are ready to track and disburse credit under the scheme to eligible beneficiaries.
  7. Owner: ____________ Target date: ____________
  8. Board/committee approval needed? Y / N
  9. Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.

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BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12536&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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