The Pradhan Mantri Awas Yojana–Urban 2.0 (PMAY-U 2.0) is transforming India’s housing and financial landscape, according to SBI Research. Beyond enabling affordable home ownership for millions of urban poor and middle-class families, the scheme is boosting digital payment adoption and fostering financial inclusion.
Key Findings from the SBI Report:
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Digital Transactions Surge: Average monthly UPI spending by PMAY beneficiaries increased from ₹40,032 to ₹45,081, showing a strong wealth effect and financial confidence.
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Female Borrowers Lead the Way: Women, as primary or joint property owners, saw UPI spending rise by ₹7,522, almost double the increase among male borrowers, highlighting gender empowerment.
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Urban & Semi-Urban Gains: Borrowers in urban and semi-urban areas witnessed the largest growth in digital transactions (₹6,093 and ₹8,848 respectively), while metro borrowers showed marginal declines.
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Discretionary Spending Boost: The scheme enabled increased discretionary digital spending, while debit card usage for non-discretionary expenses remained stable.
Launched on 1 September 2024, PMAY-U 2.0 aims to assist one crore urban families in the EWS, LIG, and MIG categories. With over 1.2 crore houses sanctioned and 75% construction completed, the scheme is not only fulfilling housing aspirations but also strengthening India’s digital economy and deepening participation in the formal financial system.
“This conditionality of female ownership has a positive impact on digital spending, linking property ownership with enhanced financial participation,” notes the report.
