New Delhi [India], July 15 (ANI): Public sector banks have approved a plan for the purchase of bonds and commercial papers issued by 67 non-banking finance companies (NBFCs) amounting to Rs 14,667 crore under the extended Partial Credit Guarantee Scheme (PCGS), Union Finance Minister Nirmala Sitharaman said on Wednesday.
Of this amount, Rs 6,845 crore is for bonds and commercial papers rated below AA which will provide liquidity support to NBFCs with lower-rated bonds and commercial papers, she tweeted.
Besides, the purchase of bonds and commercial papers of Rs 6,125 crore, including Rs 5,550 crore of bonds and commercial papers rated below AA, is currently under various stages of approval.
The PCGS was revamped under the Aatmanirbhar Bharat initiative to support the liability side of NBFCs by providing a 20 per cent portfolio guarantee to public sector banks for the purchase of bonds and commercial papers rated AA and below issued by NBFCs.
The government has taken a series of measures in recent weeks to help various sectors in offsetting the impact of COVID-19 crisis amid a general slowdown in the economy due to weakening demand and falling private investments. (ANI)