MINISTRY OF FINANCE
(Department of Financial Services)
NOTIFICATION
New Delhi, the 31st January, 2023
S.O. 457(E).—In partial modification of MINISTRY OF FINANCE (Department of Financial Services), NOTIFICATIONS New Delhi number S.O. 1443(E) dated the 18th April, 2016, number S.O. 1261(E) dated the 16th April, 2020 and number S.O. 2668 (E) dated the 01st July, 2021, the Central Government hereby makes the following amendments to the Scheme known as the Credit Guarantee Fund for Micro Units (CGFMU) (hereinafter referred to as the said Scheme), namely:-
1. Paragraph at Serial No. 8 (i) (b) of Chapter III of Notification number S.O. 1443(E) dated the 18th April, 2016, shall be read as:
(b) During subsequent years – The guarantee fee will be paid on the sanctioned amount corresponding to the outstanding balance (including on accounts which have turned NPA) of the crystalized portfolio during the currency of the portfolio and Guarantee will be valid upto the end of that financial year. “However, from FY 2023-24, guarantee fee on portfolios (including on accounts turned NPA) of past years shall be charged on the outstanding amount as on April 01 of the Financial Year except in case of working capital accounts where it shall continue to be charged on sanctioned amount, as hitherto.” Guarantee fee with respect to NPA accounts in the portfolio would continue to be paid till lodgement of claim for such accounts, at a rate specified by the Fund on the amount or fee based on risk based pricing/such other amount on such reference dates or specified rate set by the Fund from time to time (risk based guarantee fee components given at Attachments in respect of 5 Models).
2. Paragraph at Serial No. 8 (ii) of Chapter III of Notification number S.O. 1443(E) dated the 18th April, 2016, shall be read as:
“For the Base year,” guarantee fee shall be paid within 16 days from the end of the quarter. (The MLI would need to furnish a Management Certificate within 7 days from the end of the quarter, after which, a Credit Guarantee Demand Advice Note [CGDAN] would be issued by NCGTC within 3 day of receipt of Management Certificate and subsequently, the guarantee fee shall be payable within 3 days from the issue of CGDAN). “For subsequent years w.e.f. April 01, 2023, data of live portfolio of accounts (including NPA accounts) of previous years for which guarantee is sought to be continued during the Financial Year will be furnished by the MLI on or before July 31 and Annual Guarantee fee shall be paid on or before August 31 or such other date as may be decided by NCGTC to enable guarantee cover for the Financial Year.”
3. The clause at sub-para (v) (d) of Notification number S.O. 1261(E) dated 16th April, 2020, has been omitted for portfolios of FY 2022-23 onwards.
4. The words “Standard Basic Rate (SBR) of 1% of sanctioned amount” appearing in the Attachment of Notification number S.O. 1443(E) dated the 18th April, 2016 to the said Scheme defining risk based guarantee fee components will be read as „Standard Basic Rate (SBR) of 1% of sanctioned/outstanding amount, as the case may be’ against serial numbers 1 to 5, i.e. for all categories of Member Lending Institutions (MLIs).
5. Other contents of the Notification(s) shall remain unchanged.
[F. No. 16/01/2021-PMMY]
MUKESH KUMAR BANSAL, Jt. Secy.
