Credit guarantee scheme for NBFC papers extended by three months

Greater flexibility now given for purchasing AA and below-rated papers

The government has extended the partial credit guarantee scheme (PCGS) 2.0 for three months till November 19, and offered greater flexibility under the plan. 

As part of Aatmanirbhar Bharat Abhiyan, the scheme was launched to provide portfolio guarantee for purchase of bonds or commercial papers (CPs) with a rating of AA and below issued by non-banking finance companies, housing finance companies and microfinance institutions by public sector banks (PSBs). 

It was envisaged to purchase these papers of Rs 45,000 crore under PCGS 2.0, of which the maximum headroom permissible was 25 per cent of the total portfolio--Rs 11,250 crore. 

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