The Department of Financial Services (DFS) will issue the norms for the one-time partial credit guarantee scheme for public sector banks (PSBs) to purchase high-rated pooled assets of financially sound non-banking finance companies (NBFCs), a senior official said on Tuesday.
“The guidelines are ready, we will issue them in 1 to 2 days time”, Finance and Banking Secretary Rajeev Kumar said here during a review on the performance of state-run banks.
Last week, the Finance Ministry had said it would put in place an oversight mechanism for the one-time partial credit guarantee scheme for PSBs to purchase high-rated pooled assets of financially sound NBFCs as announced in the Budget 2019-20.
The government has received a proposal from the Reserve Bank of India (RBI) on the draft modalities of the credit guarantee scheme, which would be operationalised by the RBI.
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