Govt in process of approving Rs 20,000-crore lifeline to fund-starved NBFCs

The budget had proposed a partial credit guarantee scheme worth Rs 1 trillion under which public sector banks would buy high-rated pooled assets of financially sound NBFCs

Finance Secretary Rajiv Kumar on Monday said that the government is in the process of sanctioning Rs 20,000 crore to the fund-starved NBFCs under the partial credit guarantee scheme announced in the budget.

"We have supporting sanctions of over Rs 20,000 crore and the guarantee is being extended," Kumar told reporters on the sidelines of the 101st foundation day of state-run Union Bank of India here. He said some of the formalities are being worked now post which the scheme will get rolling.

Kumar said banks have been buying pooled assets since August last year after defaults by IL&FS began. He said