NBFCs/ HFCs

About:

• Name of the Scheme: 'Partial Credit Guarantee offered by Government of India (GoI) to Public Sector Banks (PSBs) for purchasing high-rated pooled assets from financially sound Non-Banking Financial Companies (NBFCs)/Housing Finance Companies (HFCs)’.
  
  
• Objective: To address temporary asset liability mismatches of otherwise solvent NBFCs/HFCs without having to resort to distress sale of their assets for meeting their commitments.
  
  
• Validity of the scheme: The window for one-time partial credit guarantee offered by GoI will open from the date of issuance of the Scheme by the Government for a period of 6 months, or till such date by which Rs. 1 lakh crore assets get purchased by banks, whichever is earlier.
  
  
• Eligible NBFCs/HFCs:
  • The NBFCs registered with RBI under the Reserve Bank of India Act, excluding those registered as Micro Finance Institutions and Core Investment Companies.
    
    
  • HFCs registered with National Housing Bank (NHB) under the National Housing Bank Act.
    
    
  • Micro Finance Institutions and Core Investment Companies are not covered under the Scheme.