• Union Minister of Finance announced further liquidity support to non-banking financial companies (NBFCs), housing finance companies (HFCs) and microfinance institutions (MFIs) under the Aatma Nirbhar Bharat Abhiyaan.
• Rs 30,000 crores Special Liquidity Scheme for NBFC/HFC/MFIs
• Government will launch Rs 30,000 crore Special Liquidity Scheme, liquidity being provided by RBI. Investment will be made in primary and secondary market transactions in investment grade debt paper of NBFCs, HFCs and MFIs.
• This will be 100 percent guaranteed by the Government of India.
• Rs 45,000 crores Partial credit guarantee Scheme 2.0 for Liabilities of NBFCs/MFIs
• Existing Partial Credit Guarantee scheme is being revamped and now will be extended to cover the borrowings of lower rated NBFCs, HFCs and other Micro Finance Institutions (MFIs).
• Government of India will provide 20 percent first loss sovereign guarantee to Public Sector Banks.
Mains Paper 3: Economy
Prelims level: Liquidity boost