NBFCs, HFCs rated up to BBB+ come under partial credit guarantee scheme

The Union Cabinet on Wednesday approved a partial credit guarantee scheme for non-banking financial companies (NBFCs) and housing finance companies (HFCs). This will allow public sector banks (PSBs) to buy pooled assets from financially sound entities.
 
“The window for one-time partial credit guarantee offered by the GoI (Government of India) will remain open till 30 June, 2020, or till such date by which Rs 1 trillion assets get purchased by the banks, whichever is earlier,” said the government in a statement issued after the meeting.
 
It added, “Power has been delegated to the finance minister to extend the