The government has approved a proposal given by the Reserve Bank of India on draft modalities of the guarantee to operationalize the Budget announcement.

This is in regard to one-time partial credit to the Public Sector Banks for purchase of high-rated assets of financially sound Non-banking financial companies. 

Disclosing this Finance Ministry officials said in New Delhi today, after the approval from the Government, the modalities would be set in motion by RBI.

The Department of Financial Services would put in place an oversight mechanism for this scheme.