HYDERABAD: Despite the Central Government’s push for digital payments and financial inclusion, a sizeable section of street vendors in Telangana remains outside the digital ecosystem. About 27% of registered street vendors — over 1.18 lakh — are digitally inactive across Urban Local Bodies (ULBs), including Greater Hyderabad Municipal Corporation (GHMC).
Disappointed by the trend, the Ministry of Housing and Urban Affairs (MoHUA) has asked the state government to take steps across all ULBs to expedite digital onboarding and transactions. MoHUA noted that nearly 27% of registered vendors in the state remain digitally inactive despite availing benefits under the Pradhan Mantri Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme.
Official data shows that out of 4.37 lakh registered street vendors in Telangana, more than 1.18 lakh are digitally inactive even after receiving benefits under the PM SVANidhi scheme. Within GHMC limits, over 18,000 of the 97,328 registered vendors (18.57%) are digitally inactive. In the Secunderabad Cantonment Board area, more than 1,050 of the 5,078 vendors, or 20.72%, remain inactive digitally.
Sources said key reasons for inactivity include change of mobile numbers, lack of familiarity with smartphones, technical issues during onboarding, and reluctance to shift from cash to digital payments. To address these issues, camps will be organised in markets, vending zones and busy commercial areas, where volunteers, bankers and digital payment agencies will provide hands-on training.
Following MoHUA’s directions, the Telangana Mission for Elimination of Poverty in Municipal Areas has initiated a focused strategy to bring inactive vendors into the digital fold. All ULBs, including GHMC, have been instructed to conduct special activation drives targeting digitally inactive PM SVANidhi beneficiaries.
As part of the effort to bring the 27% inactive beneficiaries online, ULBs have been asked to update correct mobile numbers on the PM SVANidhi portal, ensure successful penny-drop verification for newly onboarded vendors, work closely with banks and digital payment aggregators, and create awareness about revised cashback incentive guidelines.
Officials said activating digitally inactive vendors would improve financial inclusion and strengthen transparency and accountability in the implementation of livelihood support schemes. With sustained field-level efforts and cashback incentives, the government expects an increase in digitally active street vendors across Telangana in the coming months.