CURRENT AFFAIRS

Detailed explanation-1: -Which Union Ministry is associated with the ‘Credit Guarantee Scheme for Startups (CGSS)’? Notes: The Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry has notified the establishment of the Credit Guarantee Scheme for Startups (CGSS).

Detailed explanation-2: -Public credit guarantee schemes (CGSs) are a common form of government intervention to unlock finance for small and medium enterprises (SMEs).

Detailed explanation-3: -Credit Guarantee Scheme for Stand Up India (CGSSI) | National Credit Guarantee Trustee Company Limited.

Detailed explanation-4: -This scheme would help provide the much-needed collateral-free debt funding to start-ups. The credit guarantee cover under the Scheme would be transaction based and umbrella based. The exposure to individual cases would be capped at Rs. 10 crore per case or the actual outstanding credit amount, whichever is less.

Detailed explanation-5: -2. 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.