Ques: Recently the Union Cabinet gave its approval for the creation of a Credit Guarantee Fund for loans under which of the following scheme?
(a) Pradhan Mantri Jan-Dhan Yojana
(b) Pradhan Mantri Mudra Yojana
(c) Pradhan Mantri Suraksha Bima Yojana
(d) Atal Pension Yojana
Ans (b)
Related facts:
- On January 6, 2016 the Union Cabinet given its approval for the creation of a Credit Guarantee Fund for MUDRA (Micro Units Development Refinance Agency) loans.
- Establishment of Credit Guarantee Fund for MUDRA Units (CGFMU) for guaranteeing loans sanctioned under Pradhan Mantri Mudra Yojana with effect from April 8, 2015.
- With the objective to reduce the credit risk to Banks / NBFCs / MFIs / other financial intermediaries, who are Member Lending Institutions (MLIs).
- The National Credit Guarantee Trustee Company Ltd. (NCGTC Ltd.), a wholly-owned company of Government of India, shall be the Trustee of the
- The guarantee would be provided on portfolio basis to a maximum extent of 50% of Amount in Default in the portfolio.
- The Fund is expected to guarantee more than Rs 1,00,000 crore worth of loans to micro and small units in the first instance.
- The cabinet given its approval to convert MUDRA Ltd. into MUDRA Small Industries Development Bank of India (SIDBI) Bank as a wholly owned subsidiary of SIDBI.
- The MUDRA (SIDBI) Bank will undertake refinance operations and provide support services.
- MUDRA Bank and a Credit Guarantee Fund was proposed to be set up with a refinance corpus of Rs. 20,000 crore and a corpus of Rs.3,000 crore respectively as per the Budget Speech for 2015-16.
Reference