Banks sanctions Rs 1.86 Lakh crore to 50 Lakh MSMEs.
                     BANKS SANCTIONS RS 1.86 
LAKH CRORE TO 50 LAKH 
MSMES
INTRODUCTION
• Banks have sanctioned loans of about Rs 1.86 lakh 
crore to 50 lakh business units under the Rs 3-lakh 
crore Emergency Credit Line Guarantee Scheme 
(ECLGS) for the MSME sector, impacted by 
slowdown due to the coronavirus pandemic. 
Source: https://www.news18.com/
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BANK
STATISTICS
• Over 27 lakh MSME units have received about Rs 
1,32,246 crore till September 29.
• 12 Public Sector Banks, top 24 Private Sector Banks 
& 31 NBFCs, the total amount sanctioned to Non-
Individual & individuals, under the 100 per cent 
Emergency Credit Line Guarantee Scheme stands at 
Rs 1,86,469 crore, of which Rs 1,32,246 crore has 
already been disbursed to 27,09,027 borrowers
Source: https://www.news18.com/
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BANK
AATMANIRBHAR BHARAT ABHIYAN PACKAGE
• The scheme is the biggest fiscal component of the 
Rs 20-lakh crore Aatmanirbhar Bharat Abhiyan 
package to mitigate the distress caused by the 
lockdown due to COVID-19 by providing credit to 
different sectors, especially micro, small and 
medium enterprises (MSMEs).
Source: Twitter
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BANK
PORTFOLIO
• Banks have approved the purchase of portfolio of Rs 
25,505 crore, and Rs 45,000 crore Partial Credit 
Guarantee Scheme 2.0 for NBFCs, HFCs and MFIs 
to do fresh lending to MSMEs and individuals as on 
September 25. 
• Lenders are currently in the process of 
approval/negotiations for additional Rs 3,171 crore
Source: Career Addict
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BANK
TAX REFUNDS
• The department has issued Rs 1,18,324 crore to 
more than 33.5 lakh taxpayers since April 1, 2020. 
• Legislative amendments to give effect to this 
announcement was incorporated in The Taxation 
and Other Laws (Relaxation and Amendment of 
Certain provisions) Bill, 2020.
Source: The Financial Express
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BANK
LIQUIDITY SCHEME
• With regard to Rs 30,000 crore Special Liquidity 
Scheme for the stressed non-bank financial 
companies (NBFCs)/ housing finance companies 
(HFCs)/ microfinance institutions (MFIs), 39 
proposals involving an amount of Rs 11,120 crore 
have been approved.
Source: Enterslice
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BANK
DISBURSEMENT
• Out of this sanctioned amount, Rs 7,227 crore has 
been disbursed whereas Rs 182 crore will not be 
availed.
• The remaining sanctions of Rs 3,707 crore have 
lapsed. This Scheme has been closed on September 
30, 2020.
Source: https://www.news18.com/
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BANK
INSOLVENCY AND BANKRUPTCY CODE 
RELATED MEASURE
• Furthering enhancement of ease of doing business 
through Insolvency and Bankruptcy Code related 
measure, the government has raised the threshold of 
default under section 4 of the IBC, 2016 to Rs 1 
crore from the existing threshold of Rs 1 lakh in 
June.
Source: Civilsdaily
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BANK
DEFAULTS 
• Section 66 of the Code is also amended to disallow 
the resolution professional from filing application of 
action against the directors or partners of the 
corporate debtor with respect of such default.
Source: www.news18.com
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BANK
ALL ABOUT THE SCHEME
• Under the scheme, 100 per cent guarantee coverage 
will be provided by the National Credit Guarantee 
Trustee Company (NCGTC) for additional funding 
of up to Rs 3 lakh crore to eligible MSMEs and 
interested Micro Units Development and Refinance 
Agency (MUDRA) borrowers in the form of a 
guaranteed emergency credit line (GECL) facility. 
• For this purpose, a corpus of Rs 41,600 crore was 
set up by the government, spread over the current 
and next three financial years.
Source: www.news18.com
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BANK
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