The Union Cabinet on Wednesday gave nod to launch a special liquidity scheme worth Rs 30,000 crore for stressed non-banking financial companies (NBFCs) and housing finance companies (HFCs), whose financials further deteriorated due to the COVID-19 crisis.
It was announced in the Budget 2020-21 that a mechanism would be devised to provide additional liquidity facility to NBFCs/HFCs over what is provided through the Partial Credit Guarantee Scheme (PCGS), an official statement said.
The direct financial implication for the government is Rs 5 crore, which may be the equity contribution to the Special Purpose Vehicle (SPV), it said.
The ceiling of aggregate guarantee has been set at Rs 30,000 crore, to be extended by the amount required as per the need,” it added.
As part of the Rs 21 lakh crore special economic package amid the COVID-19 crisis, Finance Minister Nirmala Sitharaman last week announced Partial Credit Guarantee Scheme (PCGS) 2.0 worth Rs 45,000 crore for non-banking financial companies (NBFCs) and microfinance institutions (MFIs).

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