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CGTMSE clarifies about inclusion of NSUCBs, StCBs, DCCBs as MLIs

Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) has clarified that, like scheduled urban cooperative banks (SUCBs), non-scheduled urban cooperative banks (NSUCBs), state cooperative banks (StCBs), and district central cooperative banks (DCCBs) are also eligible to be included as member lending institutions (MLIs) of CGTMSE with certain eligibility criteria: minimum CRAR of 9%, net profit during the last completed fiscal year; gross NPAs of 5% or less, compliance with CRR SLR requirements, and no major regulatory and supervisory concerns. 

All other covenants of the current credit guarantee scheme would apply mutatis mutandis to such guarantee proposals in terms of other operational modalities, etc., as modified from time to time. Eligible NSUCBs, StCBs, and DCCBs are told to contact CGTMSE to complete the formalities for registration as CGTMSE MLIs and one-time execution of specified documents with the Trust.

This is a result of Sahakar Bharati pursing the matter at RBI. Similar guidelines are expected from Nabard.

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