INSUBCONTINENT EXCLUSIVE:
credit guarantee for PSBs to buy pooled assets of NBFCs (non-banking financial company) up to Rs 1 lakh crore, activating the announcement
of the Budget in July this year to boost lending to the cash strapped NBFCs."This would provide liquidity to the NBFC sector and, in turn,
enable them to continue to play their role in meeting the financing requirements of the productive sectors of economy including MSME, retail
and housing", the Finance Ministry said.The government has issued the scheme to implement the announcement in the Budget Speech for 2019-20
to provide a one-time partial credit guarantee to public sector banks for purchase of pooled assets of the financially sound NBFCs, the
notification said.The Department of Financial Services (DFS) will monitor the scheme
Partial credit guarantee scheme to address temporary asset liability mismatch of solvent NBFCs/HFCs; they will not resort to distress sales
Scheme to be open for 6 months or till banks exhaust 1 lakh crore asset purchase limit.NBFCs/HFCs can sell maximum up to 20 per cent of
standard assets with a cap of Rs 5,000 crore, the official notification said.Get Breaking news, live coverage, and Latest News from India
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