Government introduces Credit Guarantee Scheme for Microfinance Institutions-2.0 (CGSMFI-2.0)

• CGSMFI-2.0 is a Government of India credit-guarantee scheme operationalised through NCGTC to cover Banks/FIs against losses on lending to NBFC-MFIs/MFIs which on-lend to small borrowers.
• Targets credit flow of up to ₹20,000 crore and is expected to benefit ~36 lakh microfinance borrowers.
• UPSC relevance: financial inclusion, NBFC regulation, credit-guarantee architecture (CGTMSE/CGSS/MCGS family), post-COVID continuum of MFI support.