The government has issued the scheme to implement the announcement in the Budget Speech for 2019-20 to provide a one-time partial credit guarantee to public sector banks for purchase of pooled assets of the financially sound NBFCs, the notification said.
The Department of Financial Services (DFS) will monitor the scheme. Partial credit guarantee scheme to address temporary asset liability mismatch of solvent NBFCs/HFCs; they will not resort to distress sales for meeting commitments. Scheme to be open for 6 months or till banks exhaust 1 lakh crore asset purchase limit.
NBFCs/HFCs can sell maximum up to 20 per cent of standard assets with a cap of Rs 5,000 crore, the official notification said here.