Cabinet nods Sovereign portfolio guarantee of up to 20 % of first loss for purchase of Bonds

Union Cabinet has approved the Sovereign portfolio guarantee of up to 20 per cent of first loss for purchase of Bonds or Commercial Papers with a rating of AA and below. It includes unrated paper with original or initial maturity of up to one year issued by NBFCs or MFCs or Micro Finance Institutions by Public Sector Banks through an extension of the Partial Credit Guarantee Scheme, PCGS. The Cabinet also approved modifications in the existing PCGS on purchase of pooled assets, increasing its co...