Finance Minister Nirmala Sitharaman has said that the Partial Credit Guarantee Scheme, PCGS was revamped under the Aatmanirbhar Bharat Package to support the liability side of Non Banking Financial Companies, NBFCs. It provides a 20 per cent portfolio guarantee to Public Sector Banks for the purchase of Bonds or Commercial Papers rated AA and below which are issued by NBFCs.
In a tweet, Ms Sitharaman said, as of 10th July, under the extended PCGS, Public Sector Banks have approved the purchase Bonds or Commercial Papers issued by 67 NBFCs amounting to 14 thousand 6 hundred 67 crore rupees.
Of these 6 thousand 8 hundred 45 crore rupees is for Bonds or Commercial Papers rated below AA, providing liquidity support to NBFCs with lower rated Bonds or Commercial Papers.
She said, further, the purchase of Bonds or Commercial Papers of 6 thousand 1 hundred 25 crore rupees, including 5 thousand 5 hundred 50 crore rupees of Bonds or Commercial Papers rated below AA, is currently under various stages of approval or at negotiation stage.