New Delhi: The Partial Credit Guarantee Scheme (PCGS) for NBFCs has become operational and the Rs 3 lakh crore collateral-free credit line for MSMEs is expected to be operational soon, according to the Department of Financial Service (DFS).
In a tweet, post the meeting of Finance Minister Nirmala Sitharaman with chiefs of public sector banks (PSBs) on Friday, the DFS said that the formalities for the government-guaranteed credit for MSMEs are underway.
“PCGS scheme operational! Ensuring liquidity to #MSME! 100% Govt. Guaranteed Rs. 3 Lakh Cr’s credit line expected to be operational very soon. Formalities underway,” said the DFS tweet.
In another tweet, the department further said that PSBs will prioritize sanctions under emergency credit, reassessment of working capital, and guaranteed credit line in tier-II cities in each state and Union Territory by June 1.
The government and the PSBs have aimed for a fully digital loan documentation process of all the liquidity measures under the Rs 20 lakh crore economic package.
The DFS also said that the PSBs remain at the forefront in the fight against the pandemic and 97 percent bank branches and 80 percent of ATMs were operational throughout the lockdown.
“Helping nation tide over the economic distress caused due to #Covid19! PSBs sanctioned Rs. 1.22 Lakh cr to 92 percent of eligible MSMEs & corp. loan accounts of PSBs. under COVID-19 related emergency credit products & enhanced working capital,” said a tweet.
The details of the schemes and the loans sanctioned by the PSBS have come after Sitharaman on Friday met heads of public sector banks (PSB) through video conference for the operationalization of the economic package under the ‘Atmanirbhar Bharat’ initiative.
She also reviewed loan sanction pace, concerns of borrowers and bankers, interest rate transmission.
The DFS said that everyone attending the conference was aligned on the need to quickly address the needs of MSMEs and other customers.