Ministry of Finance Says Partial Credit Guarantee Scheme Extended With Greater Flexibility To Respond To Emerging Demands

Ministry of Finance said that the Partial Credit Guarantee Scheme (PCGS) 2.0 has been extended with greater flexibility to respond to emerging demands. Under PCGS 2.0, PSBs have approved purchase of Bonds/ CPs rated AA/AA- issued by 28 entities and Bonds/CPs rated below AA- issued by 62 entities, amounting to Rs. 21,262 crore overall. Government has now decided to modify PCGS 2.0 for purchase of Bonds/CPs. Additional 3 months have been granted to build up the portfolio. At the end of six months, i.e. by 19.11.2020, the portfolio shall be crystallised based on actual amount disbursed, for the Guarantee to come into effect. At the portfolio level, AA and AA- investment sub-portfolio under the Scheme should not exceed 50% (instead of 25% stipulated earlier) of the total portfolio of Bonds/ CPs purchased by PSBs under the Scheme.

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