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In a bid to deal with stress in the NBFC sector, guidelines will be issued soon for State-owned banks to take over pooled assets of non-banking financial companies, a Finance Ministry official said.
“Both the Department of Economic Affairs and the Financial Services are in consultations. The eligibility norms for takeover should be out this week or latest by next week,” the official said.
Finance minister Nirmala Sitharaman in the Budget proposed that public sector banks would purchase high-rated pooled assets of financially sound NBFCs, amounting to ₹1 lakh crore during the current financial year.
For this, the government will provide one-time six months’ partial credit guarantee to PSBs for the first loss of up to 10 per cent.
Banks, which themselves are in stress, will be kept out of this, the official said.
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