CURRENT AFFAIRS

Detailed explanation-1: -Govt modifies Partial Credit Guarantee Scheme 2.0, extends it by 3 months. The government has extended the Partial Credit Guarantee Scheme (PCGS) 2.0 by another three months and has also allowed banks to invest more in better rated non-banking financial companies (NBFCs).

Detailed explanation-2: -It allows for purchase of high-rated pooled assets from financially-sound non-banking financial companies (NBFCs) and housing finance companies (HFCs) by public sector banks (PSBs).

Detailed explanation-3: -The Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGMSE) was launched by the Government of India to make available collateral-free credit to the micro and small enterprise sector. Both the existing and the new enterprises are eligible to be covered under the scheme.

Detailed explanation-4: -CGTMSE was set up by Government of India and SIDBI in August 2000 for extending guarantee cover to collateral-free loans to MSE units upto Rs. 1 crore per borrower.

Detailed explanation-5: -PCE is a mechanism through which a bond issuer attempts to improve its debt or credit worthiness by providing an additional comfort to the lender. It provides the bond purchaser reassurance that the borrower will honour its repayment through additional collateral, insurance, or a third-party guarantee.